PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING mmh.com ® September 2013 Vera Bradley’s multi-channel success 18 PACKAGING ISSUE READER SURVEY Annual pallet report 26 + Webcast: Talking about pallets Thurs., Sept. 19 at 2:00 p.m. ET www.mmh.com/pallets2013 BEST PRACTICES Transport packaging of the future 36 EQUIPMENT REPORT Packaging and automation 40 Dave Gealy, senior director of distribution, Vera Bradley Improve Operations Order fulfillment is the most labor intensive and highest cost function in many warehouses. Manage these challenges with order fulfillment technologies developed by Dematic. Our solutions will help you develop fast, accurate and cost-efficient fulfillment strategies for virtually any product and order profile. Let us show you the competitive advantage of reduced fulfillment costs. Learn More. Allow Dematic to conduct a free facility audit and we’ll show you how our new generation of order fulfillment technologies can work for your environment and budget. Free Noise Cancelling Headphones* Schedule today – visit www.dematic.com/fulfillment-audit to request a free facility audit – we’ll visit with you to learn more about your business, discuss technology options and leave you with noise cancelling headphones as our personal thank you for your time. *Qualifying conference call prior to facility visit required. Limit one headphone set per company. www.dematic.com usinfo@dematic.com 1.877.725.7500 UP FRONT BREAKING NEWS YOU SHOULD KNOW Daifuku Webb to acquire Wynright DAIFUKU WEBB HOLDING COMPANY, a subsidiary of Daifuku Co. Ltd., and Wynright Corp. announced they have reached a definitive agreement for Daifuku Webb to acquire privately owned Wynright. Under the agreement, Wynright will operate as a wholly owned subsidiary of Daifuku Webb. The acquisition is expected to be completed in the fourth quarter of 2013. “The acquisition of Wynright will strengthen our business in North America and greatly improve the services and products we offer our customers, which is always our focus,” said Brian Stewart, chairman, president and CEO of Daifuku Webb. “We have worked together with Wynright on several projects and have great respect for their expertise in designing, manufacturing, integrating and installing intralogistics solutions that are helping some of the world’s largest and fastest-growing companies.” Wynright is headquartered in Elk Grove Village, Ill., and has regional offices and manufacturing locations throughout the U.S. North American robotics companies set new records for first half of 2013 MSSC partners with Houston Community College NORTH AMERICAN robotics companies have set new sales records through June of 2013, according to new statistics released from the Robotic Industries Association (RIA), the industry’s trade group. A total of 10,854 robots valued at $679.3 million were ordered from North American robotics companies in the first six months of 2013. Shipments to North American customers totaled 11,308 robots valued at $715.1 million, breaking the previous first-half records set in 2012 by 11% in units and 10.4% in dollars. “The advancements in robotics and machine vision technology have allowed for new applications in materials handling, especially in picking, packing and palletizing,” Jeff Burnstein, president of RIA, told Modern. THE MANUFACTURING SKILL STANDARDS COUNCIL (MSSC) and Houston Community College (HCC) have partnered to add the MSSC’s Certified Production Technician (CPTAE) certification to HCC’s associate of arts and sciences in manufacturing degree program. “This partnership is a historically significant event for HCC and the Houston community,” said HCC acting chancellor Renee Byas. “Through this partnership, Houston’s manufacturing industries will have direct input in the kind of training they need for their employees.” “MSSC is delighted to work with Houston Community College to provide industry-recognized, national certifications to meet the workforce skill needs for both manufacturing and logistics (M&L),” said Leo Reddy, CEO of the MSSC. “The closely integrated industries of M&L together represent one-third of the heavily industrialized Texas economy, well above the national average of 27%.” ISM: July manufacturing activity at highest level since June 2011 MANUFACTURING ACTIVITY in July continued its solid turnaround since dropping to its lowest levels since June 2009 in May, according to the Institute for Supply Management’s monthly Manufacturing ISM Report on Business. The PMI, the index used by the ISM to measure manufacturing activity, hit 55.4 in July, up from June’s 50.9 and the mmh.com highest since 55.8 in June 2011. New orders, which are often referred to as the engine that drives manufacturing, followed a 3.1% increase in June with a 6.4% increase in July to 58.3. The ISM said that this increase is the highest for the index going back to April 2011. And production, at 65, was up 11.6% over June’s 53.4 and stands as the highest reading since May 2004. Employment rose 5.7% from June to an index of 54.4. M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 3 NO ELEVATORS. NO CONVEYORS. NO TRANSFERS. .IJJ,IHKIW4VIWMHIRX34)<1EXIVMEP,ERHPMRK My 25 years in the Material Handling industry GSR½VQWXLEX4IVJIGX4MGO® will change the way XLIQEVOIXETTVSEGLIWIEGLTMGOMRKSTIVEXMSRW To hear more from Jeff about Perfect Pick go to www.opex.com/material-handling PERFECT PICK® A revolutionary “One Touch” goods-to-person picking technology 4IVJIGX4MGO´W±SRIXSYGL²XIGLRSPSK]MWFEWIH SREWMRKPIGSQTSRIRXXLIM&38®[LMGLLEW access to the inventory and delivers directly to the TMGOMRKWXEXMSRPSGEXIHEXSRISVFSXLIRHWSJXLIEMWPI &IGEYWI[MVIPIWWM&38WSTIVEXIMRHITIRHIRXP]JVSQ XLIVEGOMRKXLI]GERFIMRXVSHYGIHSVVIQSZIHMRE QEXXIVSJQMRYXIWUYMGOP]EHETXMRKXLVSYKLTYX VEXIWXSIZIVGLERKMRKFYWMRIWWHIQERHW Exceedingly scalable in both size and speed Industry-leading throughput Unmatched reliability www.opex.com 856.727.1100 VOL. 68, NO. 9 ® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING Dave Gealy, senior director of distribution, Vera Bradley PHOTOGRAPHY BY JEFF CASO, VERA BRADLEY COVER STORY SYSTEM REPORT 60 seconds with Laszlo Horvath 18 Vera Bradley’s multi-channel success The handbag and accessories maker’s new DC was designed to handle store replenishment, wholesale distribution and direct-to-consumer sales under one roof. 22 Designed for multi-channel distribution Vera Bradley makes the most of pick-to-light and put-to-light methodologies to optimize order fulfillment. FEATURES READER SURVEY 26 Talking pallets with Modern’s readers From wood to plastic to pallet pools, our readers tell us what’s important in pallets. DEPARTMENTS & COLUMNS 3/ Upfront 7/ This month in Modern 14/ Lift Truck Tips: Narrow aisle 16/ Packaging Corner: Bulk containers 52/ Supplement: Warehouses/DCs 60/ Focus On: Totes and Containers 63/ Product showcase 66/ 60 seconds with... NEWS BEST PRACTICES 36 Transport packaging materials of the future Modern asked a group of packaging experts to take a peek at new developments in secondary packaging for transport and shipping and see which innovations might hold promise for improving the best practices of tomorrow. 9/ Organizers prepare for largest Pack Expo ever 10/ Report shows national 3PL revenues more than doubled in past decade 12/ Menzies dies unexpectedly Clarification EQUIPMENT REPORT In the August issue of Modern Materials Handling, the photo on the contents page of Jim Chamberlain should have credited Jean-Marc Giboux/AP Images. 40 Packaging and automation: Sealing the deal With the growing complexity of e-commerce orders, packaging methodologies prove as important to company missions as they are to the speed of fulfillment. PRODUCTIVITY SOLUTION 48 Brewery reduces labor with floor-level palletizer 50 Custom storage containers enable growth and optimize operations mmh.com Modern Materials Handling® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite 200, Framingham, MA 01701. Annual subscription rates for non-qualified subscribers: USA $119, Canada $159, Other International $249. Single copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 USA. Periodicals postage paid at Framingham, MA and additional mailing offices. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in whole or part without written permission of the publisher is prohibited. All rights reserved. ©2013 Peerless Media, LLC. M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 5 Imagine the other wonders they would have created with a Hyundai. As one of the world’s top 25 international companies, Hyundai’s success is simple: provide competitively priced products with a long list of standard features backed by one of the industry’s best warranties. So no matter what job you dream up, we have a forklift ready to move you. Learn more at hceamericas.com. HYUNDAI FORKLIFT Moving You Further THIS MONTH IN ® EDITORIAL OFFICES MODERN MICHAEL LEVANS 111 Speen Street, Suite 200 Framingham, MA 01701-2000 (800) 375-8015 GROUP EDITORIAL DIRECTOR Michael Levans GROUP EDITORIAL DIRECTOR mlevans@peerlessmedia.com Bob Trebilcock EXECUTIVE EDITOR robert.trebilcock@myfairpoint.net Noël P. Bodenburg EXECUTIVE MANAGING EDITOR npbodenburg@peerlessmedia.com Josh Bond ASSOCIATE EDITOR jbond@peerlessmedia.com Sara Pearson Specter EDITOR AT LARGE sara@saraspecter.com Roberto Michel EDITOR AT LARGE robertomichel@cox.net Jeff Berman GROUP NEWS EDITOR jberman@peerlessmedia.com Mike Roach CREATIVE DIRECTOR mroach@peerlessmedia.com Wendy DelCampo ART DIRECTOR wdelcampo@peerlessmedia.com Daniel Guidera ILLUSTRATION daniel@danielguidera.com Brian Ceraolo GROUP PUBLISHER bceraolo@peerlessmedia.com PEERLESS MEDIA, LLC www.peerlessmedia.com Kenneth Moyes PRESIDENT AND CEO EH PUBLISHING, INC. Brian Ceraolo PUBLISHER AND PRESIDENT PEERLESS MEDIA, LLC MAGAZINE SUBSCRIPTIONS Start, renew or update your FREE magazine subscription at www.mmh.com/subscribe. Contact customer service at: Web: www.mmh.com/subscribe Email: mmhsubs@ehpub.com Phone: 1-800-598-6067 Mail: Peerless Media P.O. Box 1496 Framingham, MA 01701 For reprints and permissions, contact The YGS Group at 800-501-9571 x100 or modernmaterials@theygsgroup.com. ENEWSLETTER SUBSCRIPTIONS Sign up or manage your FREE eNewsletter subscriptions at www.mmh.com/enewsletters. Packaging takes center stage T his month in Modern, we fix the spotlight on packaging, a topic that’s now clearly top of mind for savvy materials handling professionals working in the evolving retail sector—and rightfully so. The surging volume of smaller, more frequent orders that need to be filled due to the nature of e-commerce continues to increase distribution complexity and is pushing companies to leverage highly responsive materials handling systems to meet the demands of an ever-fickle consumer. And while many e-tailers have reengineered their businesses around these automated systems, they now find themselves searching for just the right packaging solutions to not only speed up the process, but to cut freight costs and maintain an environmentally sound position in the market. The terrific case study that Modern recently ran on Staples’ continued orderfulfillment transformation summed up the state of packaging in e-commerce almost perfectly. Its highly automated supply chain process allows the second-largest e-tailer to now ship millions of orders to customers with the guarantee that any order placed before 5 p.m. will be delivered the next day to 98% of the U.S. population from its network of state-of-the-art fulfillment centers. However, the Staples supply chain team found that not even the most sophisticated fulfillment process could solve their customers top complaint: excessive packaging. Based on this feedback, the company created a self-imposed goal of a 20% reduction in packaging by 2020 and then set out to find a solution. In January 2012, the retailer launched its “smart-size packaging program” and deployed a system-wide rollout of a trans- formational new technology known as “ondemand packaging.” The technology allows Staples to automatically create a customsized carton specific for every less-than-fullcase order it ships. Today, these types of orders—also known as break-pack orders—account for approximately 40% of Staples’ order volume. “It’s a remarkable change,” says contributing editor Maida Napolitano, who wrote the article. “Staples has reduced costs, they’ve given customers what they want, and it’s a positive, environmental story.” This month, associate editor Josh Bond takes Modern readers deeper into the packaging challenge in his two-part article that first explores the technology that is helping companies to ensure speed and damage-free movement within automated systems, and then offers a snapshot of the automation that’s improving traditional packaging processes. “Packaging is not simply about keeping up with throughput,” says Bond. “As the last touch point between a merchant and consumer, packaging speaks for the entire organization. Changes in packaging might improve the speed, efficiency and cost of fulfillment, but all those gains are lost if it negatively impacts customer satisfaction.” And, if there’s any doubt of the importance that’s now being placed on packaging, look no further than the numbers being reported in regards to this month’s Pack Expo Las Vegas (Sept. 23-25). According to PMMI, the association that produces the show, 1,750 packaging solutions providers (up 15% from 2011) will occupy more than 700,000 square feet of exhibit space. The association says this will be the largest event since the show opened in 1995. Official Publication of Member www.peerlessmedia.com mmh.com Member of Winner Jesse H. Neal Certificates of Merit for Journalistic Excellence M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 7 Follow Modern Online facebook.com/mmhmagazine Twitter | @modernmhmag Web | mmh.com PACKAGING Organizers prepare for largest Pack Expo ever SINCE EXPANDING EXHIBIT SPACE IN LATE JULY, THE SHOW HAS ADDED ANOTHER 150 EXHIBITORS. BY JOSH BOND, ASSOCIATE EDITOR including: Innovation Stage: 40 free half-hour presentations, from engineering, operations and cost-analysis experts from the Alliance for Innovation and Operational Excellence (AIOE) and consumer insight analysts from Mintel, among others. Central Hall, Booths C-141, C-142 and C-143. Center for Trends & Technology: In this new special exhibit, learn how technological innovations can improve production. Central Hall, Booth 1358. Food Safety Summit Resource a third Innovation Stage to expand PMMI, THE ASSOCIATION for the on-floor educational programPackaging and Processing Technoloming, delivering even more insights to gies, the owner and producer of attendees looking to learn about ways Pack Expo Las Vegas (Sept. 23-25, to enhance sustainability, efficiency, 2013), is gearing up to host the automation and food safety measures. largest show since the event The roster of educational proopened in 1995. grams includes a number of new As of Sept. 1, more than 1,750 and, for the first time, free events, processing and packaging solutions providers were set to occupy more than 700,000 net square feet of show floor space. The show is also on track to play host to its largest audience of attendees. Attendance is expected to well exceed 26,000 manufacturing professionals from the baking and snack, beverage, confectionery, pharmaceutical and other industries—a 10% increase over 2011 numbers. “Our exhibitor numbers are already up 15%, and the floor itself has expanded by 12% compared to the 2011 Las Vegas show,” says PMMI president and CEO Charles D. Yuska. As of Sept. 1, more than 1,750 processing and packaging solutions providers are set to In fact, PMMI has added occupy more than 700,000 net square feet of show floor space. mmh.com M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 9 Center: Offering free presentations, information and one-onone consultations that address critical food safety issues and compliance with the Food Safety Modernization Act. Upper South Hall, Booth S-7332. Reusables Learning Center: This new program offers daily free informative presentations by end users and industry experts on how they have successfully integrated reusable packaging into the supply chain. Presentations are on the show floor in the Reusable Packaging Pavilion. Lower South Hall, Booth S-6458. Education & Workforce Development Pavilion: Those looking for education opportunities outside of the show can meet several representatives of colleges and universities in the Education Pavilion. Upper South Hall. Clemson University Packaging Emporium—Design for the Future: Discover the impact that packaging design has on consumer behavior as you explore an interactive exhibit featuring Clemson’s biometric technology. Central Hall, Booth C-151. The Amazing Packaging Race: Teams of students from across the country are given points as they go hands-on with a variety of packaging hardware and software. PACK Solutions Challenge: Student teams are tasked with recommending a packaging solution for a specific application. Students’ innovative solutions will be on display after 3 p.m. on Monday, Sept. 23; Tuesday, Sept. 24 and Wednesday, Sept. 25 in the Education & Workforce Development Pavilion. Upper South Hall. 3PLS Report shows national 3PL revenues more than doubled in past decade A NEW REPORT SHOWS that 86% of domestic Fortune 500 companies use third-party logistics providers (3PLs) for logistics and supply chain functions, including General Motors, Procter & Gamble, and Walmart, who each use 50 or more 3PLs. These are among the findings of a report recently issued by Armstrong & Associates, titled “Trends in 3PL/ Customer Relationships—2013.” The report leverages Armstrong & Associates’ proprietary database of 6,398 3PL customer relationships to provide detailed information on the top outsourcers to 3PLs, trends in service demand, and 3PL market size by vertical industry segment from 2005 through 2013. Commenting on the report, Evan Armstrong, president of Armstrong & Associates, said 3PLs continue to develop business at approximately three times the rate of growth in the U.S. economy. “Even in the current slow-growth global economy, overall U.S. 3PL market growth was 6% in 2012 and is forecast to be just over 4% in 2013,” he said. “North America is benefiting from a slowly improving U.S. economy with increasing manufacturing levels, the near-shoring of some manufacturing to Mexico, and newly addressable oil and gas operations in Canada and the U.S. At the same time, U.S. consumers bounced back from the great recession of 2009 and started to spend more. All of these factors are driving a slightly improved 3PL market.” The average customer is using each 3PL for just under three different logistics services with transportation management being the most frequent service. Among all 3PL/ customer relationships analyzed, 18.5% are strategic, with the 3PLs performing supply chain management and/or Report says that 86% of domestic Fortune lead logistics provider ser500 companies use 3PLs for logistics and vices. While these strategic supply chain functions. relationships were dominated relationships within the retailing and by automotive and technological industries in the past, there industrial industries, said Armstrong. are increasing numbers of strategic Armstrong said the estimate of 3PL penetration of the total potential national 3PL market is 21%, up from 10% in 2002. “Consistent with the increased U.S. market penetration is our estimate of total U.S. 3PL revenues increasing from $65.3 billion in 2001 to $141.8 billion in 2012.” The report also quantifies the Global Fortune 500 3PL market at $250.2 billion, a 67% increase since 2005. The complete report is available from Armstrong & Associates at: www.3PLogistics.com. E-Commerce Challenge: Fast, Accurate Order Fulfillment. Solution: PUT-TO-LIGHT Matthews Fulfillment Systems Systemsis delivers advanced material Matthews Fulfillment handling automation to maximize productivity, quality and efficiency within your order fulfillment process. Our Lightning Pick brand is the leading product suite of light-directed technologies available. This is why successful e-commerce operations utilize our putto-light solution for fast and accurate sortation of batch orders into individual customer orders. Simply scan and sort by light to gain 99.9+% accuracy levels, 40% average increases in productivity and reduced operational costs. Lightning Pick | A part of Matthews Fulfillment Systems Phone: 262.250.2100 | Toll-Free: 800.827.8878 Email: info@lightningpick.com | Website: www.lightningpick.com 12 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G OBITUARY Modern remembers Jock Menzies JOHN T. “JOCK” MENZIES III, president of American Logistics Aid Network (ALAN) passed away unexpectedly on Aug. 17 after an accident at his Maryland home. According to a published report, Menzies, 69, was traveling in a private tram car on Friday when the cable snapped and sent Menzies falling 200 feet down a steep slope behind his home in Arnold, Md. Menzies died as a result of injuries susJohn T. Menzies III tained in the fall. Menzies will be remembered for helping to transform the logistics of disaster relief, co-founding ALAN in 2005 after witnessing the breakdown in relief efforts in the wake of Hurricane Katrina. The nonprofit tapped into transportation and logistics networks to supply water, food and medical supplies to areas hardest hit by natural disasters. Among other notable achievements, Menzies traveled to Haiti in the months following the 2010 earthquake, where he coordinated efforts to transport Haitian orphans to safety. ALAN also assisted with the delivery of critical supplies to victims of the Japanese tsunami in 2011 and those of Superstorm Sandy in 2012. As chairman of the Central Maryland Red Cross in 2003, he helped engage supply chain companies to assist in the wake of Hurricane Isabel. Menzies brought expertise from his 30 years as chairman of The Terminal Corporation, a logistics, warehousing and transportation company based in the Port of Baltimore. Menzies and his brother bought the company from their father and uncle in 1984. According to the company’s Web site, the company grew tenfold under Menzies’ guidance, with current annual sales in excess of $30 million. 䡺 mmh.com YOUR PRODUCTS DESERVE LESS. LESS WAREHOUSE SPACE. LESS EXCESS MATERIAL. LESS WASTE. LESS COST. LESS HASSLE. Using the wrong packaging size with void fill can cost you. Packsize® gives you the ultimate flexibility to rightsize the box for every product, on demand. Reduce shipping costs and dimensional charges, minimize the use of air pillows, eliminate product damages due to package size, decrease environmental impact, and increase customer satisfaction. GET PACKSIZED. The world’s largest companies are switching to On Demand Packaging® packsize.com LIFT TRUCK TIPS Narrow aisles boost efficiency for smaller operations The transition to two-level picking can improve storage and cut travel times in cramped facilities. By Josh Bond, Associate Editor W hen lift truck customers think about narrow aisle applications, the tendency is to envision massive, hyper-efficient facilities with picking at 400 inches, according to Bill Pfleger, president of Yale Distribution for Yale Materials Handling Corp. “Many people think of narrow aisle and picture these huge facilities with tall aisles and sophisticated warehouse management systems,” says Pfleger. “But, it’s also possible to make a lot of space very quickly by adding just one additional layer of racking for storage or picking.” Pfleger offers the example of a customer who traditionally used internal combustion lift trucks to stack product on the ground. They did not have any expertise in warehousing methodology, but they were looking at pushing through almost twice the product the following year compared to the current year. The solution included a shift to narrow aisles with second-level order picking. “It was simple enough to add a second level of racking in the 5- to 12-foot pick zone, and the customer was able to meet their expected growth.” The key is to understand what’s changing and what a customer thinks will change in terms of volume and SKU profiles and the equipment needed to handle that, says Pfleger. “If there are minimal changes, customers are able to keep getting more efficient in their existing space. But in cases of significant growth and space limitations, narrow aisle equipment can provide real benefits, including increased efficiency and storage volume.” In addition to storage efficiency improvement, some small-scale narrow aisle applications can also significantly reduce inefficient travel time. “Travel time is lost time in the picking business,” says Pfleger. “Significant losses in picking occur from travel time between picks and from the last pick to wherever the finished pallet needs to be transported.” The transition from standard aisles to narrow aisles can 14 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G turn a few feet of width per aisle into productive space. In very narrow aisle setups, subtle differences in the dimensions of equipment can enable a customer to even further optimize floor space, where every inch counts. An example is a customer whose use of a slightly thinner lift truck allowed them to add three more aisles of racks, amounting to a 2% increase in storage capacity. “That was huge for them, because it didn’t require a dime of brick and mortar to achieve the desired storage expansion,” adds Pfleger. Josh Bond is Modern’s associate editor and can be reached at jbond@peerlessmedia.com mmh.com HOLIDAY RUSH MANAGED BY STEVE. PEAK EFFICIENCY PROVIDED BY VOCOLLECT. B R O U G H T TO YO U BY VO C O LL EC T BUSINESS OPTIMIZATION SMART INNOVATION OPERATIONAL FLEXIBILITY PREMIER EXPERIENCE MODERN MATERIALS HANDLING THOUGHT LEADERS WEBINAR “TRANSFORMING YOUR DISTRIBUTION CENTER OPERATION TO MEASURABLY IMPROVE PERFORMANCE THIS HOLIDAY SEASON” – PRESENTED BY KURT SALMON Improving distribution center performance during the peak holiday season is a paramount objective for virtually every seasonal business. Preparing for the peak-season is a challenge that continues to grow as the percentage of goods to consumer increases in importance. This presentation will review key components of developing a scalable and cost effective strategy to measurably improve performance during peak seasons. FEATURED PRESENTERS: Steve Schaffer Director Kurt Salmon Michael Levans Group Editorial Director Supply Chain Group, Peerless Media SEPTEMBER 26, 2013 2:00 P.M. EST ARE YOU READY TO MAKE YOUR BUSINESS BETTER? Visit www.mmh.com/vocollect5 to register. © 2013 Vocollect. All Rights Reserved. PACKAGING CORNER Bulk containers deliver parts, cost savings Changes in bulk container size during the recession reduce wasted trailer space and increase efficiency. By Sara Pearson Specter, Editor at Large M ajor North American original equipment manufacturers (OEMs)—including automotive, industrial machinery and appliance makers—have long relied on reusable, plastic bulk containers to transport components from suppliers to assembly lines. During the recession, companies seized the opportunity to further expand the use of containers, says Scott Krebs, senior product category manager for BulkPak containers at Orbis. “In addition to holding onto those assets longer, many companies took advantage of slower production to push idle reusable containers even deeper into their supply chains,” Krebs says. “When they were busy, their traditional reusable program only went to Tier 1 and Tier 2 suppliers; during the slowdown they extended it to Tier 3 and Tier 4 suppliers.” The advantage, says Krebs, is two-fold. In addition to eliminating more expendable packaging and its associated costs further into the supply chain, the companies involved have improved their lean manufacturing and sustainability practices. In the same vein, Krebs says that OEMs are always looking at how parts and inventory handling impact costs within their supply chain operations. With most components trucked from supplier to assembly, transportation and logistics efficiencies have become a key area of focus because they represent up to 80% of costs, he says. “Bulk containers used in these applications have a 45 x 48-inch footprint. When transported in a 53-foot trailer, 13 containers sit side-by-side down the length of the trailer for 26 positions,” Krebs explains. “But that doesn’t completely maximize the volume of the trailer.” Many OEMs have identified that wasted trailer space as an opportunity for better efficiency, says Krebs. “Reengineering the sidewalls to a 44.5-inch footprint allows two additional containers to fit the space in 14 side-by16 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G side positions. That lets OEMs fit more of their product into a single truckload without requiring any changes to line-side processes: The tops and bottoms of the containers still inter-stack, for example.” Further, bulk container sidewalls have been redesigned to create a shorter collapsed height for return shipping, allowing a nine-high (instead of the previous eight) to fit a trailer, says Krebs. Sara Pearson Specter is an editor at large with Modern and can be reached at sara@saraspecter.com. mmh.com The fastest-growing companies are making distribution their FORTE. Warehouse Control System (WCS) Software Driving high-performance distribution operations Supply chain managers must constantly look for new ways to improve their distribution networks to create differentiation and stay ahead of the Introducing next generation SCM competition. At FORTE, our expert innovations. The industry’s next generation consultants engineer and implement warehouse control system, FORTE’s Smart Warehouse Suite™ (WCS 2.0), is a proven innovative distribution operations software platform for high-performance that are flexible, scalable and, above distribution operations. FORTE’s expert all, profitable for many of the world’s consulting team helps clients increase fastest-growing companies. operational flexibility using our costeffective technology for both integrating automation and adding functionality. Empowering operational decisions. Whether examining the effectiveness of Bridging the gap between WCS and WMS. delivery systems or planning for future Rather than force-fitting bloated software DC enhancements, WCS 2.0 provides packages into every distribution scenario, the real-time business intelligence FORTE’s methodology employs lean, agile and the predictive analytics to guide functionality to quickly extend legacy operational improvements and strategic systems capabilities and augment WMS planning. This comprehensive visibility tasks — without making WMS code changes. to performance metrics enables proactive Our highly configurable software alternative issue resolution and advanced system adapts to your most challenging requirements. monitoring capabilities. Download white paper WCS 2.0 Smart Warehouse Suite™ at forte-industries.com/WCS D I S T R I B U T I O N : C O N S U LT I N G / E N G I N E E R I N G | D E S I G N / B U I L D | S O F T WA R E T EC H N O LO G Y MODERN system report Vera Bradley’s multi-channel success The handbag and accessories maker’s new DC was designed to handle store replenishment, wholesale distribution and direct-to-consumer sales under one roof. By Bob Trebilcock, Executive Editor 18 S E P T E M B E R F 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G or years, retailers and their suppliers outsourced distribution activities to third-party logistics (3PL) providers. The argument was that their core competency was in designing, sourcing, merchandising and selling, and not in picking, packing and shipping. In today’s retail market, where sales can originate from multiple channels, that model is being turned on its head. Brick-and-mortar retailers are selling online, Web retailers are opening retail stores and wholesale distributors are competing in both channels. The best retailers recognize that distribution has to be a core competency. They are bringing distribution back in house, often serving multiple channels under one roof. Those were among the reasons Vera Bradley, a designer and manufacturer of colorful quilted women’s handbags and accessories, expanded to a 400,000-square-foot, multi-channel distribution space near its corporate headquarters in Fort Wayne, Ind., last fall. The new facility added 200,000 square feet and associated capacity in support of multi-channel growth. It was designed from the outset to serve a number of sales channels under one roof and from one reserve inventory, including: • wholesale distribution to specialty retailers that are Vera Bradley’s traditional customers; mmh.com From left: Cindy Goheen, distribution manager, warehouse; Ted Dienelt, distribution manager, shipping; Jason Kiser, senior WMS specialist; Dave Gealy, senior director, distribution; Larry Harness, inventory control manager. PHOTOGRAPHY BY JEFF CASO, VERA BRADLEY • wholesale distribution and value-added services for a growing list of large, national retailers, which they refer to as Key Accounts; • store replenishment to Vera Bradley’s own growing chain of retail and outlet stores; and • a rapidly expanding direct-to-consumer Web fulfillment business. Working with a systems integrator (Forte, forte-industries. com), Vera Bradley implemented a flexible system that includes three multi-level pick modules, a best-of-breed warehouse management system (WMS) and a pick-and-pass order fulfillment solution powered by bar code scanning, pick-to-light and put-tolight technologies. The facility ships mixed pallets to Key Accounts, mostly full cases to its outlet stores, split cases to specialty retailers as well as corporate stores and specially packed gift boxes to online customers. All orders are filled from one reserve inventory. “Orders flow through our pick-and-pass fulfillment pipeline, regardless of where they originate,” says Dave Gealy, senior director of distribution. “At the same time, we created a foundation for a separate fulfillment flow for the Web should we begin to experience negative impact to service levels in the future due to multichannel growth.” Two friends with an idea In March of 1982, Vera Bradley’s co-founders Barbara Bradley Baekgaard and Patricia R. Miller took note of the lack of feminine-looking luggage as they waited for a flight in the Atlanta airport. Within weeks of arriving home, Baekgaard and Miller created a company to market and manufacture their original designs for stylish, cotton luggage, handbags and accessories. The company was named for Baekgaard’s mother—Vera Bradley—a stylish woman who had once been chosen by Elizabeth Arden to model. It was an unlikely beginning for a women’s accessories business. The new company was headquartered in Fort Wayne, Ind., a city better known for heavy manufacturing than its fashion sense. But, Vera Bradley quickly developed a loyal following for its colorful designs. Today, Vera Bradley has grown to more than $570 million in annual revenue. While some product is still manufactured in Fort Wayne, other items are also manufactured overseas. Over the past seven years, the company has evolved from one distribution channel into multiple channels. A Web store for direct-to-consumer sales was launched in 2006. Internet fulfillment was first outsourced to a 3PL in Michigan. The next year, Vera Bradley opened its first retail store, and by the end of fiscal year 2013, it will operate nearly 100 retail and out- mmh.com M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 19 MODERN system report Full cartons are stored and picked from order pickers. These are most commonly used to fulfill orders for Vera Bradley’s key accounts. let stores. In 2012, it expanded its Key Accounts program, distributing its product to a select group of large, national retailers and the military, many of whom require value-added services. In all, Vera Bradley is now distributing to more than 3,300 retail partners along with managing its growing online presence. As recently as 2007, the company was handling wholesale distribution from a 40,000-square-foot facility north of Fort Wayne while the 3PL in Michigan handled Web fulfillment. In the original facility, associates picked by paper to shopping carts. However, the growth in sales and sales channels demanded a new distribution infrastructure, according to Gealy. The first step was to open a 200,000-square-foot, semi-automated facility in February 2007, which included 20 S E P T E M B E R 50,000 square feet of dedicated manufacturing space. The DC introduced technology, automation and best practices. It featured high-density storage in a very narrow aisle reserve storage area, two pick modules with pick-to-light technology, and a WMS. E-commerce was still being handled by the 3PL. Within a year, Vera Bradley was investigating ways to turn that facility into a true multi-channel distribution center that could support retail and e-commerce order fulfillment. “In the summer of 2008, we moved domestic manufacturing to a new location across town,” Gealy says. “Then we added a level to our pick modules, expanded our packing area and brought Web fulfillment in-house. It gave us the ability to leverage our automation.” By 2009, that facility was constrained. “We only had four dock doors and limited staging space that we often shared with shipping,” says Cindy Goheen, distribution manager for the warehouse. “That created a bottleneck.” Despite the addition of a third pick module plus adding levels on existing pick modules, more space was needed for picking, Goheen explains. Service levels, which are the life blood of retailing, began to degrade. Creating a multi-channel facility In 2010, the company did a network study to determine whether it should add a second distribution center. The result indicated that Vera Bradley would be better served by expanding the existing DC, adding capacity and implementing new processes for multichannel distribution rather than adding a second DC. In a sense, Vera Bradley’s business model lent itself to multi-channel distribution, since a significant portion of orders for retail distribution involve split-case picking and mixed carton orders, not unlike Web orders. “We ship as many full cases as possible to 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G our outlet stores, but all of our other channels are mostly split-case picking,” Gealy says. The difference between the channels is the size of the orders and in how they are packed after picking. “We ship mixed cartons with a number of items to our retail stores and partners,” he says. “Our typical Web order, on the other hand, is gift boxed in a special way. So, we have a different profile downstream at the packing station.” The expanded facility builds on the best practices Vera Bradley implemented within the first 200,000 square feet, including very narrow aisle reserve storage, enhancements to the WMS, RF bar code scanning and pick-to-light technologies. Processes are tied together by a conveyor, sortation and associated warehouse control system (WCS). It features three multi-level pick modules. Faster moving SKUs are picked in two three-level modules. In those, associates are directed by the pick-to-light system. Slower moving SKUs are picked in a third module, where associates rely on mobile computing and bar code scanning to receive instructions and confirm picks. In the future, the module can be expanded to three levels. All three modules can fulfill orders for any sales channel. The real difference is how the product is handled after it is picked: Cartons for Key Accounts need value-add attention and may be palletized and stretch-wrapped; cartons for Vera Bradley’s stores and retail partners are automatically weighed and taped then sorted into trailers; Web orders are sorted to packing stations for special gift boxing before they are conveyed directly into a parcel carrier trailer. New features The facility includes three new features to optimize processes. One is a put wall for direct-toconsumer orders with more than one item. This is a wall with 18 bin locations that are enabled by lights. Each bin represents a customer order. Totes with SKUs for larger Web orders are conveyed to the put wall area. When an mmh.com MODERN system report The new Vera Bradley DC features a unique light-directed put wall solution for direct-to-consumer orders with more than one item (top left). A separate processing area fulfills orders for Key Accounts (bottom right). associate scans a UPC bar code label from items in the tote, lights indicate which bins will receive product from that tote. Once all the items for an order are put in the bin, a light on the other side of the wall alerts a packer that the sorting is complete and orders are ready to be packed. “More than 60% of our Web orders are multi-unit orders,” says Gealy. “Using the put wall takes the hunting and pecking for items out of the process.” The put wall, he adds, has realized a nice improvement in labor costs associated with filling multi-unit orders. Another feature is an 18,000-squarefoot mezzanine for value-added services required by Key Accounts, such as stuffing the bags with paper for shelf display. The mezzanine area includes some carton- and pallet-flow pick locations. “Before, we picked inventory that required value-added services to a pallet truck and delivered them to processing tables,” says Gealy. Now, the product can be picked in one of the pick modules and conveyed in and out of the value-added processing area. Or, during busy periods such as a core product launch, that demand can be picked and processed from the pick locations in the mezzanine. “By putting the demand there, we take that volume out of the mmh.com other pick modules,” Gealy says. Finally, outbound shipping from the Web packing stations bypasses the shipping sorter and flows directly into parcel carrier trailers. “Before the expansion, all of that volume went through the shipping sorter,” Gealy says. “Now, we’ve opened up capacity on the sorter for retail and partner store growth.” One of the keys to making these systems work together is the integration between Vera Bradley’s WMS and WCS. In the new configuration, the WMS communicates with the order management system to receive orders. Based on priorities communicated from distribution management, key shipping associates determine which orders are going to be picked, and the WMS then determines how they will be batched and where they will be picked from. The WMS performs those management functions and then sends the orders to the WCS for execution. “The WMS still handles conventional RF-directed picking,” explains Jason Kiser, senior WMS specialist. “But the WCS communicates with the pick- and put-to-light systems, the conveyors and the sorter. Once the picks take place, that information is communicated back to the WMS.” In that sense, Kiser adds, the WMS “has taken on more of a set up role for the WCS.” By October 2012, the expansion had gone completely live. Since then, the bottleneck on the docks has become a thing of the past. “We have 24 doors and significantly more space,” says Goheen. “We have the ability to bring in a higher level of inbound materials and process them more quickly.” Prior to the renovation, Vera Bradley typically processed four to six inbound con- M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 21 MODERN system report tainers in a 24-hour period. This past March, the facility processed 39 containers in a 24-hour period. Overall, the facility has seen a decrease in distribution labor costs. “In the two-week period after Thanksgiving, we processed 40% more volume and improved service levels by 60% over the previous year,” says Gealy. “And, we did it with very little stress.” More importantly, he adds, the DC has established the foundation to sup- Designed for multi-channel distribution port Vera Bradley’s growth through the foreseeable future. “We’ve been able to address each of those pain points and create solutions that can handle business growth for the next three to five years,” he says. Vera Bradley Designs Fort Wayne, Ind. SIZE: 400,000 square feet of distribution space PRODUCTS: Women’s handbags and accessories, luggage and travel items, eyewear, stationery and gifts. Vera Bradley makes the most of pick-to-light and put-to-light methodologies to optimize order fulfillment. THROUGHPUT: Each fulfillment channel is measured differently. DIRECT-TO-CONSUMER: Averages 6,000 to 7,000 cartons shipped per day. Peak was 27,000 cartons shipped. V era Bradley’s expanded distribution center was designed to manage the company’s traditional wholesale and retail replenishment sales channels while accommodating the growth of its Internet fulfillment. The facility brings together conveyor and sortation technology along with both pick-to-light and put-to-light technologies. STORE REPLENISHMENT: Averages 50,000 to 60,000 units shipped per day for retail and specialty partners. Peak was 191,000 units shipped. EMPLOYEES: 375 full-time and temporary associates, fluctuates seasonally SHIFTS PER DAY/DAYS PER WEEK: 3 shifts, 5.5 days per week (3:30 p.m. through midnight on Sunday). Three-level pick module 4 Outbound staging Value-added services mezzanine 7 6 3 Narrow aisle reserve storage Shipping sorter Taping lines 14 5 Slow-moving 13 Outbound auditing 12 Put wall 11 SKU pick module Narrow aisle 3 reserve storage Outbound processing and staging area 4 Receiving and staging processing area 2 1 Receiving 7 Narrow aisle 3 reserve storage Three-level pick module Single unit e-commerce orders 8 9 Shipping 10 Parcel shipping for e-commerce orders 22 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com MODERN system report Receiving: Product is processes are complete, the prodreceived from two different System suppliers ucts are conveyed to an outbound sources. order consolidation and staging SYSTEMS INTEGRATOR AND WAREHOUSE CONTROL SYSTEM: Vera Bradley receives an area (7). There, they are palletForte Industries, forte-industries.com advance ship notification ized, stretch-wrapped and staged LIFT TRUCKS: Raymond, raymondcorp.com (ASN) when sea containers for pickup and shipping (8). CONVEYOR: Dematic, dematic.com; Intelligrated, intelligrated.com from off-shore manufacturPacking: Direct-to-consumer SORTATION: Dematic, dematic.com orders are sorted to one of two ers arrive in Long Beach or WMS: Manhattan Associates, manh.com pack-out areas. Totes picked for Seattle. Containers travel PICK-TO-LIGHT: Lightning Pick Technologies, lightningpick.com single unit, e-commerce orders, by rail to an inland port in COMPUTING AND BAR CODE SCANNING: Motorola which represent about 35% of Chicago and then by truck MOBILE Solutions, motorolasolutions.com the direct-to-consumer orders, go to Indiana. At the receiving RACK: Ridg-U-Rak, ridgurak.com docks (1), the process begins to one area (9). Items are scanned with a receipt against the ASN to initiate the packing process. in the warehouse management They are then wrapped in tissue onto the conveyor system, it is scanned system (WMS). Cartons are manu- and diverted to a pick zone. Once it paper with embossed logo sticker and ally palletized in the receiving area (2) reaches a zone, an associate scans the placed in a special shipping box along where they are built into unit loads. license plate bar code label. Lights illu- with an invoice folio and gift card if the The WMS creates a license plate bar minate the locations where items for consumer desires. Customers may also code label to associate the SKU and that container are stored and indicate request a special two-piece gift box. quantity to a pallet. Once pallets are the quantities to be picked. The asso- Once the process is complete, the carready for storage, product is inspected ciate presses the pick light to confirm ton is sealed and conveyed directly into for quality control and pallets are staged the pick and places them in the carton. a parcel carrier trailer (10). Multi-unit orders are conveyed to a (2) for storage. The container or tote is then conveyed Domestically manufactured product to the next pick location until the order special put wall area (11). When a tote arrives (1) at the facility on pallets. They is complete. It is then conveyed to the arrives, an associate scans the label on the tote and begins scanning the UPC are unloaded by lift truck, and staged next step in the process. (2) for put away into storage. • RF scanning for slow moving bar codes on items in the tote. When a Storage: A lift truck operator scans SKUs: Slower moving SKUs are stored UPC bar code is scanned, the system the license plate bar code on a staged in a one-level module (5) that includes lights up the location that will receive pallet and is directed to a drop-off loca- carton flow and conventional deck rack the item from that tote. That process is tion for the very narrow aisle reserve for storage. Any order with a SKU from repeated with each unit in a tote until storage area (3). There, the pallet will this module initiates there. The picking all of the items for an order have been be picked up by a wire-guided turret process is similar to the process in the put to a bin. At that point a light on truck. That operator will be directed to three-level pick modules, except that the other side of the put wall will india storage location in the reserve storage orders are sent to the associate’s mobile cate that the order is ready for packing. area. The product is now available to fill RF computer and picks are confirmed An associate will remove items from by scanning a bar code label. Once all the bin and pack the order similar to orders. Picking: Vera Bradley uses two of the picks are complete, the container a single-unit order. The order is then is either conveyed to one of the three- conveyed directly into a parcel carrier picking processes. • Pick-to-light for fast-moving level pick modules (4) or to the next trailer (10). SKUs: The fastest-moving SKUs are step in the process. Shipping: Some cartons are comstored in two three-level pick modules Value-added processing for Key plete coming out of a pick module. (4). Within the pick modules, product Accounts: Value-added processes are They require neither value-added is stored in both pallet flow and carton performed in an 18,000-square-foot processing nor packing and convey flow racks. Associates are directed by mezzanine area (6). Items requiring to a carton sealing area and then to pick-to-light technologies and can fill value-added services can be conveyed the shipping dock. In route, the carorders from any sales channel. Orders from one of the slow- or fast-moving pick tons pass over an inline scale which for retail partners, corporate stores and modules. Or, during busy selling sea- audits (12) the actual weight of the Key Accounts are picked to a shipping sons, those items can be picked from a carton to the projected weight. If the carton. Web orders are batch picked to carton-flow area located within the mez- weight is correct, the carton is taped a tote that will be sent to a packing sta- zanine to improve the order flow in other (13) and sorted (14) to a shipping tion. When a carton or tote is inducted picking areas. Once the value-added lane (8). 䡺 24 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com NOTEWORTHY When our engineers work on a motion project with you, they share everything that’s in their heads. Sometimes that means turning over 100 pages of notes, formulas and drawings. Other times, it’s simply having straight forward conversations. At the same time, Yaskawa customers share their proprietary knowledge because they can trust us. Because we give their challenges a lot of thought. Because when they talk to us, they know we are on their side. Trusting the guys across the table from you with your most important product secrets. That’s noteworthy. YA S K A W A A M E R I C A , I N C . DRIVES & MOTION DIVISION 1 - 8 0 0 - YA S K A W A YA S K A W A . C O M Follow us: For more info: http://Ez.com/yai527 ©2013 Yaskawa America Inc. MODERN reader survey Pallet Report Talking pallets with Modern readers From wood to plastic to pallet pools, our readers tell us what’s important in pallets. R By Bob Trebilcock, Executive Editor ecently, we read a case study about how CHEP and IFCO worked with a food distributor to develop a new pallet management program. The project involved the implementation of a dock sweep program to pick up CHEP pallets shipped to the distributor and a new design for better performance of the used wooden pallet shipped to the distributor’s customers. “The industry is really becoming more consultative and service based rather than product based,” a spokesperson from CHEP told Modern. That change may not yet be fully reflected in the broad market. In fact, 56% of respondents in Modern’s annual survey of pallet users said purchase price was the most important factor in their decision to use a certain type of pallet. That was more than any other factor. But, it is reflective of feedback we hear from system integrators, who are beginning to understand that a poorly built pallet can wreak havoc on their automated systems, and consultants who are now paying attention to how their clients’ loads perform after they come off the end of 26 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G the packaging line. In other words, pallets and the associated transport packaging are more of a priority than ever. That may explain why the pallet market continues to grow, even as shippers look for alternatives to the every day wooden pallet. Research firm Freedonia Group expects the pallet market to grow by 3.5% a year through 2017. While modest, that’s a growth rate that is faster than the overall economy. How then does the user community view pallets? To answer that question and others, we surveyed subscribers of Modern as well as a sample of recipients of our e-newsletters. We received 353 qualified responses, defined as a reader who is employed at a location that uses pallets. Here’s what we learned. Purchasing decisions A number of factors go into the decision to buy a certain type of pallet. And, while purchase price remains the most important factor, cited by 56%, it was down from 63% of readers mmh.com Reader Survey Report/Webcast ANNUAL PALLET REPORT Thursday, Sept. 19, 2013 • 2:00 PM ET www.mmh.com/pallets2013 What types of pallets do you use? 91% Wood 37% Plastic 18% Wood composite Cardboard/corrugated the prior year. Cost per use was cited by nearly 40% of respondents, suggesting not only that cost is important, but that readers are getting more than one trip out of their pallets. Other leading factors include: • 53% strength, • 50% durability, • 43% customer requirements, • 40% reusability, and • 32% availability. Wood pallets still predominate. They are used by 91% of readers. However, pallets manufactured from alternative materials are in the mix, with some readers also using: • 37% plastic pallets, • 18% wood composite, • 8% cardboard/corrugated, and • 7% metal. More importantly, there appears to be a growing interest in alternative pallets. In its most recent report, Freedonia noted that plastic pallets are expected to record above average growth. The research group also premmh.com 8% Metal Other 7% 3% Source: Peerless Research Group (PRG) Are the wood pallets you purchase new or used? 58% 60% What has been your experience obtaining used wood pallets? Quality is not as good, worse 27% Fewer pallets are available/ Used pallets are in short supply 27% They are more expensive 16% Pallet pool Other New Used pallets, pallets or cores 15% 5% Have not experienced nor do we anticipate any issues procuring used pallets 39% Source: Peerless Research Group (PRG) M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 27 Reader Survey Report/Webcast ANNUAL PALLET REPORT Thursday, Sept. 19, 2013 • 2:00 PM ET www.mmh.com/pallets2013 dicted that metal pallets will notch the During the next 12 months what do you expect biggest percentage gains of any of the from your usage of plastic pallets three most common pallet types (wood, plastic, metal). Those projections are supported by Modern readers: 34% indicate they used Stay the same 62% more plastic pallets during the last 12 months, compared to 27% who reported they were using more plastic pallets in Decrease 5% last year’s survey; 33% expect to increase their usage of plastic pallets in the next Increase 33% 12 months. Most respondents said they are attracted to the cleanliness and longer life span of plastic pallets: • 48% said compliance issues/cleanliAnd, why do you expect your usage of plastic pallets to increase? ness and safety reasons; • 45% said plastic pallets are more Compliance issues/Cleanliness and safety reasons 48% sustainable than wood and last longer; More sustainable than wood/ Last longer 45% • 40% said plastic pallets are more Durability 40% durable than wood; • 25% said customers ask for plastic Customers are asking for plastic pallets 25% pallets; and Greater control over our pallets 18% • 18% said customers have greater control over their pallets. 18% Other Although Freedonia Group predicts increasing demand for metal pallets, only Source: Peerless Research Group (PRG) 4% of respondents expect to start using metal pallets in the next 12 months, and only 8% expect their usage to increase in the next 12 months. bors, including Canada (80%), Mexico/South America/ Readers indicate they are exploring metal pallets because Carribean (67%), China/Asia (63%), Western Europe (50%) they are durable, cleanable and conductive; because their and Eastern Europe (39%). Keep an eye, however, on the customers want options besides wood and plastic; and Middle East and North Africa (33%). because they are exploring options for reusable pallets. International business does require a different pallet The 48 x 40-inch is still the most commonly used size strategy for most shippers, with only 22% reporting that they of pallet, according to 58% of readers. That was a signifi- don’t do anything differently for international and domestic cant change from the 81% that reported using 48 x 40-inch deliveries. Some of the strategies include: pallets last year. Still, no other size was being used by more • 45% treat their pallets; than 17% of respondents. Only 8.3% reported that they are • 18% use alternative materials other than wood that don’t shipping on a 24 x 20-inch half pallet, down from 10% in last require treatment; year’s survey. • 12% use wood pallets from their own pool; and The number of respondents who are using pallets to ship • 6% use a pallet pool for international shipments. This is globally dipped from 57% to 55% this year, while the num- double the 3% who reported using a pallet pool for internaber that report they only ship domestically rose from 39% tional shipments in 2012. to 42%. Only 3% ship on pallets solely to international cus- It’s still a wooden pallet market tomers. If pallets are a leading indicator of economic activity, While plastic, presswood and metal pallets are taking some marthis slight dip coincides with the drop in exports from U.S. ket share, no alternative is as versatile and cost-effective as new, manufacturers. used or pooled wooden pallets. Like last year, the leading recipients are our closest neighModern’s readers appear to take a strategic approach to 28 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com The Order Fulfillment Experts. Define-Design-Implement Higher Profitability Distribution Centers Numina Group is an industry leading material handling integrator with a rock solid track record consistently exceeding project performance specifications. Our 27 years of industry leading expertise provides clients a knowledgeable, reputable partner for define, design and implementation of turn-key distribution operations. RDS™ Software is the key to accelerating performance. Our solutions are powered by RDS™, a Powerful, Scalable, Tier 1 WCS. Its family of application control modules provides unsurpassed performance in pick, pack, ship, order fulfillment, conveyor controls, and sorting applications. Pick – Speaker Independent Voice Directed Picking with Cartonization for Pick to Carton, Batch Pick Carts, Zone Route Pick Powered by RDS™ Modules, and Mixed Case Pick to Pallet Pack – LitPak Pack Sheet Automation Prints, Folds and Inserts Invoices and Documentation ™ Powered by RDS™ Ship – In-line Scan, Weigh, and Dimensioning with Print and Apply Labeling to Auto Apply Packing Slips, Shipping and/or Retail Compliance Labels Powered by RDS™ Lean Design – Perfect Order Practices 10331 Werch Drive, Woodridge, IL 60517 630-343-2600 www.numinagroup.com Reader Survey Report/Webcast ANNUAL PALLET REPORT Thursday, Sept. 19, 2013 • 2:00 PM ET www.mmh.com/pallets2013 pallet usage—given the percentages, a typical respondent is probably purchasing both new and used pallets, and some are also participating in a pallet pool. In all likelihood, these decisions are driven by the requirements of their customers. What type of pallets are you primarily using? Stringer 51% Block 27% Both equally 22% Source: Peerless Research Group (PRG) However, there were some slight changes in the dynamics. The number of respondents using a pallet pool remained constant at 17%. However, the gap between the purchase of used and new pallets narrowed. In 2012, nearly 63% reported that they rely on used pallets, also known as cores, while 59% said they purchased new pallets. In 2013, 60% say they purchase used pallets, while 58% say they purchase new pallets. Similarly, the number of readers who report they are using more used pallets this year dropped to 42% from 46% in 2012. The change can be explained, at least in part, to the shortage of cores that has plagued the market for several years and showed up in Freedonia’s research. For instance, although 39% of readers say they have not experienced any issues in procuring used pallets, 27% report that the quality of used pallets has deteriorated; 27% say that fewer used pallets are available; and 15% say they have become more expensive. Of those readers who have experienced price increases, 48% have seen a spike of 5% to 9%, and 24% have seen a spike of from 10% to 14%. In response to these issues, 64% of readers say they will buy YOU PERFECT IT. WE’LL PROTECT IT. Buckhorn offers an unmatched selection of reusable packaging solutions designed to protect your products and increase your profitability. Our latest innovation, the BN3230 bulk box, features a non-sequential fold and reduced collapse height for a better return ratio. It offers a replaceable runner that snaps into place and improved decoration options, saving your company both time and money. Visit Pack Expo Booth #6256 to be among the first to see Buckhorn’s NEW BN3230 bulk box. Or visit buckhorninc.com for more information on our complete line of bulk boxes. ©2013 Buckhorn / Myers Industries, Inc. #&.'*') US: 1.800.543.4454 Canada: 1.800.461.7579 www.buckhorninc.com BULK BOXES | HAND-HELD CONTAINERS | IBCs | PALLETS | SPECIALTY BOXES 30 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com The BaldorÝDodge® Quantis® full line of modular gear drives are engineered for flexibility and greater torque density in a compact housing configuration, with horsepower capabilities from 1/4 to 75 Hp. The Quantis family of products offers three types of gear reducers: In-Line Helical (ILH), Right-Angle Helical Bevel (RHB) and Motorized Shaft Mount (MSM). All three types of reducers are dimensionally interchangeable with major global competitors. And, you can find the full line of Baldor’s Dodge Quantis modular gear drives at your local Motion Industries location. Our local sales and service specialists are experts in application and technical support, providing the parts and the know-how you need to stay up and running. The brands you count on from the people you trust…that’s BaldorÝDodge and Motion Industries. ©2013 Motion Industries, Inc. Over 550 locations More than 5.2 million products Industrial maintenance training courses Call. Click. Visit. 1-800-526-9328 for the location nearest you MotionIndustries.com Reader Survey Report/Webcast ANNUAL PALLET REPORT Thursday, Sept. 19, 2013 • 2:00 PM ET www.mmh.com/pallets2013 more new pallets, and 13% say they plan to create and manage their own pools. Just 4% say they plan to rent from a pallet pool such as those from CHEP, PECO and iGPS. Block or stringer At the grocery store, the question is paper or plastic? When it comes to wooden pallets, the question isn’t just used or new, it’s also stringer versus block? The stringer pallet design is favored by standard pallets such as the 48 x 40-inch GMA, the most commonly used pallet on the market. The block pallet design, favored by plastic pallet makers as well as wooden pallet pooling organizations like CHEP and PECO, got a boost two years ago when Costco became the first retailer to require its suppliers to ship product on block pallets. Beginning with last year’s survey, we began to look to see if the Costco requirement is having an impact on the pallet market. A few trends are beginning to appear. First, as with the new versus used question, block or stringer isn’t an either/or question. More than half (51%) of How likely are you to consider participating in a pallet retrieval/recovery system or in a third-party pallet rental system during the next year? Highly likely 6% Likely 13% Not very likely 38% Not at all likely 33% Don't even know what a pallet retrieval/recoveryy system or third-party pallet rental system is 11% Source: Peerless Research Group (PRG) How Much Can we Reduce your Handling Costs? That’s the question behind the reuseable pallets we manufacture for food, beverage, and pharmaceutical customers around the world. Whether you need a custom or standard solution in Radiopaque, FDA approved, or FM approved materials, you’ll find it at PSI Edge Rackable Double Leg Ratchet Edge Rackable Radiopaque ProStack® Pallet One Piece ProGenic Toll Free (877) 444-7225 &NBJMJOGP!QSPTUBDLDPNtMedford, NJ 08055 USA www.prostackpallets.com 32 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com Over the past 12 months have any customers required you to change your pallet usage? No 86% Yes 14% What changes are you making/did you make? Using more block pallets 33% Using more stringer pallets 25% Other 42% Using different/special sized pallets Heat-treated pallets for overseas shipments Using pallet pooler Went from plastic to wood Improved pallet design for more strength Source: Peerless Research Group (PRG) mmh.com MODERN reader survey readers are shipping solely on stringer pallets and 27% are shipping solely on block pallets. Another 23% are shipping on block and stringer pallets in equal measure. In other words, a significant percentage (50%) is shipping some loads on block pallets. That is up from 47% in 2012. Second, a relatively small percentage of readers (14%) have been asked by customers to change their pallet usage. Of those, 33% are using more block pallets compared to 25% that are using more stringer pallets. Changes are being requested from a variety of points in the supply chain. According to respondents, 46% are from the manufacturers; 36% are from the retailer; and 26% are from the wholesalers. As with last year, Costco appears to be one of the few companies planning to require its suppliers to ship solely on block pallets. DXWRPDWLRQVVLVFKDHIHUXVPDWUL[ M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 33 MODERN reader survey Have you evaluated or considered a system/solution for creating or managing your own pallet pool? Yes 32% No 68% Source: Peerless Research Group (PRG) SOME THINK DELIVERY ERRORS ARE INEVITABLE. WE THINK DIFFERENT. Running an efficient warehouse center makes a big difference to profitability and customer satisfaction. That’s why many leading brands put sortation systems from BEUMER and Crisplant at the heart of their supply chain. Through operational insight and analysis, BEUMER Group is able to deliver complete automated material handling systems that fit seamlessly into your process. Offering exceptional speed, capacity and accuracy, our technology makes a difference to your customers, your brand and your bottom line. For more information, visit www.beumergroup.com Get into the pool Nearly 50% of food, beverage and consumer packaged goods currently ship on a pooled 48 x 40-inch pallet, according to some sources. Pooled pallets, especially plastic pallets, are also used by auto suppliers, pharmaceutical makers and food and beverage manufacturers with tight control over their manufacturing and distribution operations. In fact, nearly 44% of respondents said they either use a pallet rental company, such as CHEP, PECO or iGPS, or they have a pallet retrieval or recovery system in place. Still, it means that 56% of respondents are purchasing their pallets or reshipping on pallets delivered to them by suppliers. Looking forward, most companies plan to continue with their current strategies. A majority of readers say they are not very likely (38%) or not at all likely (33%) to participate in a pallet or pallet management program, while 19% say they are likely (13%) or very likely (6%). Of readers who would consider participating in a pallet pool, 55% report that they would explore creating or managing their own pool; 32% say they have already evaluated or considered creating or managing their own pool. Finally, we asked how interested are readers in using a pallet pooling service managed by the pallet industry as an alternative to established pools managed by CHEP, PECO and iGPS. The responses were almost identical to last year’s survey: roughly 14% indicate they are interested or highly interested. And, 69% indicate they are not very or not at all interested. As the building block of unit loads and the most fundamental transport packaging, we’ll continue to watch the pallet market over the next year. 䡺 Companies mentioned in this article CHEP: chep.com IFCO SYSTEMS: ifco.com FREDONIA GROUP: fredoniagroup.com PECO: pecopallet.com IGPS: igps.net mmh.com MODERN best practices Modern asked a group of packaging experts to take a peek at new developments in secondary packaging for transport and shipping and see which innovations might hold promise for improving the best practices of tomorrow. By Sara Pearson Specter, Editor at Large T oday’s secondary packaging suppliers are no longer content with selling pallets, containers, totes and dunnage to their customers—rather, they’re working to be providers of innovative solutions. By engineering unique products with novel features, these packaging vendors aim to help companies meet a variety of goals, including reduced damage, timelier food and beverage handling, improved sustainability and overall cost savings. “The future of the packaging industry is in efficiency,” says Lance Wallin, executive director of global packaging systems at Sealed Air. “Whether it’s finding more efficient designs that require less material for more protection, efficient transportation and recy- 36 S E P T E M B E R cling or disposal of packaging, vendors are looking for ways to do more with less, while supporting environmental and economic sustainability.” To see which products might hold promise for the best practices of the future, Modern spoke with packaging experts to take a look at a few of the recent innovations in secondary and bulk transport packaging. Hybrid pallets Wood remains the dominant pallet material, representing an estimated 95% of pallets in use today. But wood has its downside. “Wood pallets are extremely strong compared to their weight by nature, but if you don’t protect the blocks and the 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G leaderboard, a forklift can easily destroy them,” says Laszlo Horvath, assistant professor of practice at Virginia Tech and director of the Center for Packaging and Unit Load Design. “Plastic pallets last longer, but they are less stiff than wood and more expensive.” In response to these challenges, says Horvath, suppliers are creating hybrid pallet designs and attachments that combine the best features of each material. An example of a hybrid pallet is offered by C&H Distributors for use in closed-loop applications. Manufactured by Relius Solutions, the 48 x 40 x 5-inch Green Line Armor pallet features oak boards encapsulated on both ends with molded recyclable plastic bumpers. mmh.com Transport packaging materials of the future “The plastic on the ends takes the abuse from forklifts, while the wood in the middle supports higher capacities than plastic pallets can, at half the price,” says Dave Caltreux, product manager for material handling at C&H. “It’s still more expensive than a one-way use wood pallet, but it’s so durable that it’s covered by a 10-year warranty.” Also offered as a means to improve the longevity of wood pallets in closedloop systems, United Pallet Services has developed a plastic attachment that screws on to the pallet’s 40-inch sides to protect the lead boards by deflecting forklift impacts. The attachment—made of either recycled polypropylene sourced from bottle caps or virgin plastic—debuted at ProMat mmh.com earlier this year. “We engineered the pointGUARD wood pallet protector to be an alternative to more expensive plastic pallets,” explains Callen Cochran, business development manager. “The plastic protector keeps pieces of wood from being broken off, reducing debris to create a safer environment and extending the life of a wood pallet by up to five times.” Cochran says the pallet protection device also boosts lift truck driver productivity. “Several companies testing the attachment in their facilities have noted that it cuts down on the number of times the forklift driver has to exit the vehicle to remove the debris caused by a misaligned forks,” he adds. New materials, construction in plastic pallets, totes & containers Suppliers of reusable pallets, totes and containers are working on extending the life cycle and reach of their products through the combination of different materials—such as plastic with wood and metal, or additives that enhance the properties of plastics— without adding to their cost. “The disadvantage of plastics is that they are not inherently stiff,” says Virginia Tech’s Horvath. “You can make them stiff by adding a lot more plastic, but that makes them extremely heavy, as well as more expensive.” In designing new products, Rehrig Pacific has taken what Trent Overholt, the company’s vice president, calls a M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 37 MODERN best practices performance characteristics of wood block pallets.” Buckhorn is applying the same hybrid design approach to the new BN4845 bulk container, says Dan Huhn, the company’s new product development manager. “We’ve mixed a structural foam sidewall with a two-piece welded, injection-molded base to create a container that gives the best of both construction techniques,” he says. “There’s strength and rigidity in the structural foam side panels, but also strength and impact resistance in the base.” Suppliers of reusable plastic packaging systems are also evaluating a variety of alternative materials used in the construction of their products. “We’re looking at different materials for different applications,” adds Huhn. “In the past, suppliers used polyethylene or polypropylene for all applications. But, for a cold storage or high heat application—or a facility with a lot of forklift handling where high Suppliers are working to maximize their use impact resistance is imporof raw materials to boost users’ efficiency tant—we’re investigating difin transportation, recycling and disposal ferent variations of the base of packaging materials—from loose fill material to produce different dunnage to formed packaging trays to air performance characteristics.” pouches. Some additives can even be used to reduce the noise “materials agnostic approach.” produced by the containers as they “We’ve found, particularly for our travel over conveyors, Huhn says. The structural products, a hybrid design is modified materials don’t substantially really a better fit,” he says, citing the affect the cost of the products, but they company’s new edge-rackable, 40 x 48 substantially improve the specific perx 5.6-inch GMA 228 block pallet that formance that the application demands. holds capacities of 2,800 pounds, even “These materials changes allow the in a 2-inch flow through edge rack. packaging to go into applications that “It’s a mix of polyolefin plastics with it couldn’t go into before, such as blast embedded metal reinforcements,” he freezing to -20° Fahrenheit,” he says. explains. “Adding the metal allows us “By using different resins and additives, to make the pallet nearly a half-inch now we can offer plastic reusables as a shorter than most standard plastic pal- solution.” lets, while still replicating the structural Still other material variations might 38 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G help control the cost of the products themselves, says Bart Eggert, industrial product line manager at Akro-Mils. “It’s not just the bottom line costs, but also the raw materials cost fluctuations associated with plastic resins such as polypropylene,” Eggert explains. “We continuously evaluate other options to verify that we can produce the same performance and quality of our current products, but provide the flexibility to keep our prices stable.” In evaluating those materials, new inspirations sometimes arise—such as the broad line of clear reusable storage bins constructed of polycarbonate that Akro-Mils unveiled last year. Targeted to a variety of markets, the bins extend productivity and efficiency by giving users better visibility to the products stored within. “Simply by being able to visually identify the product, and the amount of it, stored inside a stack of the containers without having to lift or open each one also makes it safer for users and easier to manage inventory,” Eggert says. In addition to modifying the materials and construction of reusable plastic packaging, suppliers are also adjusting their approach when presenting the solution to customers. “We’re not just selling the packaging assets anymore; we’re selling business intelligence,” says Rehrig Pacific’s Overholt. “Reusable packaging systems are a very cost effective way to deploy technologies that bring new data about the supply chain and consumer preferences to our customers. Particularly those in the food and beverage industries, where products have a freshness date.” By embedding radio frequency identification (RFID) tags (or other available technology) on as little as 10% of a reusable secondary packaging system, the packaging itself can provide information about turn rates, utilization, environmental conditions and loss rates—and not just about the asset, says Overholt. “For many of our customers, outof-date inventory represents an area of potentially significant loss,” he explains. mmh.com RIDG-U-RAK Delivered! By applying a hybrid design approach to manufacturing container components—using different materials and construction techniques (such as structural foam, welding and injection molding) when forming bases and sidewalls—suppliers can offer products that leverage the advantages of each. “If a pallet gets misplaced, a worker with a mobile RFID reader can walk or drive through the warehouse and use that additional visibility to quickly locate inventory that is close to being out of date, and get it shipped.” Having that additional layer of technology on the secondary packaging helps a company push the product stored on or in it out to the stores in time for a consumer to still have a positive experience, says Overholt. Inflatable dunnage materials bolster sustainability Alternative materials and formulations are also finding their way into inflatable, film-based dunnage, says Sealed Air’s Wallin. “We’ve focused on significantly reducing the amount of petroleumbased resins used in our packaging film, while simultaneously improving product performance,” he says. “Reducing the gauge of the film while increasing the volume of air it can hold yields both environmental and economic benefits for our customers by better protecting the contents of their shipments.” Additionally, the company has developed a variety of different film formulations to create new properties, such as inflatable cushioning anti-static material that meets military specifimmh.com cations, and renewable, biodegradable and home-compostable plant and mycelium-based cushions that can be molded for custom-engineered packaging solutions. “We also help our customers’ customers by communicating to them directly on the packaging how it can be properly disposed of after their use,” Wallin adds. The company has implemented the Sustainable Packaging Coalition’s How2Recycle label on certain materials to explain how recipients can properly recycle or dispose of the air pillows after their use. “It really comes down to efficiency. If we can optimize the use of raw materials, our customers are much more efficient in transportation, recycling and disposal, and that’s a win for everyone,” he says. 䡺 Companies mentioned in this article “...we were under pressure to have all of our 32,000 pallet positions of rack operational. RIDG-U-RAK really delivered... on-time and on-budget, and the way the rack system fit together was very impressive...” Kirk Hill General Manager, Roberts Warehousing Project: Roberts Warehousing • 1.8 million Pounds of Pallet Rack • 32,000 Pallet Positions • Double Deep Selective • Slotted System • On-Time/On-Budget • Superior Quality... Fit and Finish Read more at ridgurak.com/Roberts The most TRUSTED name in Rack! akro-mils.com BUCKHORN, buckhorninc.com AKRO-MILS, CENTER FOR PACKAGING & UNIT LOAD DESIGN, unitload.vt.edu C & H DISTRIBUTORS, chdist.com REHRIG PACIFIC, rehrigpacific.com SEALED AIR, sealedair.com UNITED PALLET SERVICES, palletpointguard.com Visit ridgurak.com or Call Toll Free: 1-866-479-7225 www. Selective Pallet Rack • Drive-In • Push-Back Flow • Pick Modules • Cantilever • Stacker Cranes Roll-Out Shelving • Seismic Base Isolation MODERN equipment report Packaging and automation: Sealing the deal With the growing complexity of e-commerce orders, packaging methodologies prove critical to the speed of fulfillment. By Josh Bond, Associate Editor T Shuttles and mobile robots are capable of storing and retrieving a variety of packaging sizes. 40 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G he rise of e-commerce is transforming traditional approaches to order fulfillment and distribution. The growing volume of smaller, more frequent orders challenges conventional means of storing, picking and shipping product, but it’s also forcing companies to look at their packaging operations in ways they never needed to before. In store fulfillment operations with predictable order volumes and dimensions, packing stations can get into a groove and keep pace with picking approaches geared to the same predictability. E-commerce introduces uncertainty in terms of when orders will arrive, what customization the directto-consumer order might require and what infinite number of shapes a final packaged order might take. Many companies are finding manual packing processes buckle under this increased complexity. As a result, automated packaging solummh.com Poly bags can reduce packaging and freight costs, but pose unique challenges to systems based on carton handling. tions for everything from document insertion to right-sized containers have become more appealing. “We’ve seen a lot of automation in order picking, but little change between picking and the dock,” says Bill McMahon, director of new business development for Orbis. “It’s the Jetsons on one side of the curtain and the Flintstones on the other. That’s starting to change.” As automated packaging solutions gain steam, the more time-tested automation in storage and picking has also had to contend with increased uncertainty in the face of e-commerce. Systems once tuned to cartons and cases are increasingly expected to handle more individual units and therefore a wider range of product sizes and packaging types. “The challenge is to design a system that can handle whatever comes at it, without knowing how that might change in the future,” adds Dave Simpson, director of application engineering for SSI Schaefer Systems International. “Packaging has become more challenging for automation.” Of course, it all comes back to the e-commerce customer, who expects speed, consistency and quality at the lowest possible price. With its historic focus on speed and cost, the DC might turn to automation to efficiently store, pick, pack and ship. But while automated packing solutions can cut material costs and improve throughput, wider discussion is happening about their value. “The packing area is the last touch point between a consumer and a merchant,” says Kevin Reader, senior account executive with System Logistics. “There is a CEO-level recognition that the presentation factors are critical to customer satisfaction. The cost of excessive void fill is one thing, but mmh.com M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 41 MODERN equipment report Right-sized shipping containers can reduce packaging costs and also enhance the customer experience. more damaging is a customer’s impression that a company is inefficient.” In this two-part article, Modern will explore the strategies and technologies that help ensure speedy and damagefree product movement within automated systems, as well as take a look at the automation technologies that improve traditional packing processes. Part I. How packaging interacts with automation As retailers dipped their toes into the e-commerce waters, facilities designed for the certainty of store replenishment could be augmented to handle the uncertainty of the few direct-to-consumer orders that needed to be filled, according to Tim Kraus, product management supervisor for Intelligrated. Now, the volume of e-commerce orders—and the uncertainty associated with those orders—is growing for retailers and distributors alike. As a result, facilities or systems dedicated 42 S E P T E M B E R to e-fulfillment are becoming the norm because an order “is processed entirely differently in terms of where it comes from, how many items are picked and how it’s packaged,” Kraus says. Dedicated facilities will more readily meet the e-commerce challenge, but more often the fulfillment for that channel has been shoehorned into existing systems. Automated systems now need to be able to move both a mini fridge in a box and an individual t-shirt in a poly bag, says Lance Anderson, director of sales, sortation and distribution for Beumer. “In existing facilities, companies either force product into boxes to use the automation equipment they already have or handle bags in a separate process altogether,” he says. “When you have two different processes, it’s harder to synchronize them to meet the same outbound objectives.” On the inbound side, a similar tension is created when attempting to align pallet putaway with the need to later access eaches. In years past, com- 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G panies that wanted to automate the movements of a range of product sizes might have married them to bar coded totes, breaking pallets down into those totes before storage. Today, more customers want to get away from the touch points and labor required in the process of unpacking before storage and instead prefer to store in the carton. Automated storage and retrieval systems (AS/RS) have evolved accordingly. New attachments for mini-load crane or shuttle systems allow systems initially built for the predictability of totes to now handle variable carton sizes. In addition to the conveyors used to transfer totes from storage locations onto an AS/RS load handler, that handler might be fitted with two fingers that grasp even small, light cartons from the side before pulling them onto the conveyor. “Automation can now handle different sized packages on the load handler as well as different sizes in a single storage location,” says Roy van Putten, manager of sales engineering for Vanderlande Industries. mmh.com The New Rehrig Building a better bottom One of the most common ways to move smaller volumes of varied product through an automated system is to use totes or trays. In addition to absorbing the scuffs and scrapes that might damage consumer packaging, these standardized containers interface with retrieval systems independent of the dimensions or types of product packaging they contain. “You’re trying to take a complicated set of SKUs and standardize the way you handle them,” says McMahon from Orbis. “Reusable packaging is an enabler of that process.” Totes can also play a valuable role in connecting facilities, not just processes. Consider that a product might be loaded into corrugated containers at the manufacturer only for that container to become trash at the distribution center, where it will again be packed into a corrugated container before shipping. “Totes can be used to gain efficiencies in the handoff between manufacturing and distribution,” says Sean O’Farrell, market development director for Dematic. “If the manufacturer can put finished product directly into a tote, the product can then go directly to the pick face, bypassing reserve storage and a number of touches while eliminating wasted cartons.” In the future, O’Farrell imagines reusable packaging could even connect the distributor with the consumer, who might retrieve his item from a reusable shipper and send it straight back. For now, the standard tote and tray have a few drawbacks. If you pull one case from a tote that carries two, you GMA-228 Rack it. Track it. Reuse it. A rackable pallet with measurable ROI Lower Your Cost Per Trip Gain Sustainability Scorecard Improvements UÊ Increase Your Yield and Reduce Shrink UÊ Reduce Operational and Packaging Costs UÊ Meet New FSMA Traceability Standards UÊ UÊ GPS & RFID Trackable Rackable to 2,800 Lbs. Minimum 5-Yr Life Cycle 100% Sustainable Packaging U Supply Chain Integration Complete Logistics Ser vices U Enhanced Tracking Capabilities Totes are commonly used to standardize the movement of individual and irregular items through an automated system. mmh.com Phone: (800) 546-4993 Email: info@rehrigpacific.com Web: www.rehrigpacific.com A FAMILY TRADITION OF GROWTH, SERVICE AND INNOVATION CONVEYOR PRODUCTS, PALLET AND CONTAINER HANDLING EQUIPMENT STANDARD PRE-ENGINEERED CONVEYOR PRODUCTS Offering: 8\PJR:OPW7YVNYHT :[VJRPUN6W[PVUZ(]HPSHISL 3V^7YPJL.\HYHU[LL =VS\TL+PZJV\U[Z ,_[LUZP]L5VU:[HUKHYK *HWHIPSP[PLZ CONVEYOR ROLLERS REQUEST PRICE OFFER www.lewcoinc.com *HSS419.625.4014 *VU]L`VY:HSLZ :[HUKHYK:PaLZ-YVT¹[V¹ ,_[LUZP]L5VU:[HUKHYK9VSSLY6MMLYPUN LEWCO Inc.3HUL:[ :HUK\ZR`6OPV *VW`YPNO[¹3,>*60UJ (SS9PNO[Z9LZLY]LK Cut the Trash Talk! Add a BloApCo Shredder above your baler and stop complaining about your Trash Line. BloApCo warehouse shredders greatly expand disposal capacity and: V Eliminate jams and ensure your production area is always clear of OCC V Increase bale density and lower your haul-away costs V Save energy and improve your environment with quiet, low HP, low dust performance www.bloapco.com 800.959.0880 © Blower Application Company, Inc., Germantown, WI 2012 REDUCING SCRAP SINCE 1933 are now 50% less utilized in that cube. Additionally, totes and trays often require that the entire contents be delivered to a picking location where one item might be removed before the rest are returned to inventory. “Every time you move something, it costs money,” says Schaefer’s Simpson. “The goal is to handle it the fewest number of times.” New trays are designed with slots so that automation can come from underneath to retrieve a single case or carton from a tray containing many. “When you build a better bottom, that reusable packaging allows for greater uptime of the automation because of the predictability,” says O’Farrell. Part II. Automated packaging As the frequency of orders has increased, so has the complexity of packing those orders. Depending on the destination and the contents of the shipment, special labels and documentation might need to be included, creating even more steps and opportunity for error at the packing line. Automation can take the guesswork out of customizing per-order requirements while collecting data about each process step. “In the past, companies measured only overall production off the line, not at the level of individual machines or steps of the packing process,” says Wink Faulkner, vice president of business development for Logopak. “Without that visibility, things like traditional printand-apply labeling—with its notoriously spotty uptime—often went unnoticed. But the packing station is the last thing a box sees before it leaves the facility. If it’s down, your facility is down.” Collected data can also expose imbalances throughout the supply chain. One distributor found its per-carton number of items at the manufacturing side didn’t line up with what customers were ordering. “When those boxes move into distribution, 90% of them have to be broken down and repackaged,” says Dan Hanrahan, president of the Numina Group. “We’re helping them right-size the package further upstream so they don’t mmh.com Winchester Industrial Controls Control System Integrators • Electrical Contractors Winchester Industrial Controls specializes in the design, fabrication and electrical installation of integrated control systems for a wide range of materials handling applications throughout North America. Simple or complex, Winchester’s design engineers combine strong academic and professional experience in the latest software and hardware architectures for today’s automation needs. Engineering & Software Warehouse Control System Electrical Design, PLC, & PC Coding, CAD, Support Customized trays enable efficient product storage, movement and delivery. have to touch it again in distribution.” It’s a new take on the concept of building to order, he says, where the manufacturer reduces the need for downstream repacking by building to the average order. “We’re trying to get the packaging engineer from the manufacturing side and the distribution folks together,” Hanrahan says. “I don’t think that conversation has traditionally happened, but it works well when companies look at the supply chain as an integral unit instead of discrete processes.” Because of the importance of customer presentation and satisfaction, this conversation might need to go even wider in an organization. “It can’t just be an operations decision to automate packaging functions, since it will change the way customers receive their orders, and presentation is key,” says Helgi Thor Leja, industrial distribution industry leader with Fortna. “You must get buyin from other departments, like sales and marketing, to make sure packaging changes won’t negatively impact your customer. I’ve seen companies make changes that improve the packaging process but hurt the overall customer experience. That’s a bad tradeoff.” Making the business case In addition to speed, data collection and consistency, one of the best reasons to automate steps in the packaging process is physical space. “From wholesale distribution to direct-to-consumer, the amount of labor needed in picking and packing has literally exploded,” says Junior Cairns, senior design engineer mmh.com Sortation Controls Shoe Sorter, Tilt Tray, Hanging, Bombay & more WinSight by Winchester Conveyor Controls Winchester’s Core Competencies Barcode Scanning, Carton Labeling & Weighing Integration 96 Napco Drive Terryville, CT 06786 Phone: 860-261-7713 Conventional and MDR Solutions Fully Staffed Electrical Installation Group www.winchestercontrols.com Efficient VERTICAL STORAGE means LESS WAREHOUSE Maximize the efficiency of your plant or warehouse space with the smallest cubed footage possible. Intelligent vertical storage maximizes productivity with optimized retrieval times, increased security and improved operator safety. Store smart, store vertical for much less than you think. Scan to learn more about our Vertical Carousels. Toll Free: 800.210.0141 www.storevertical.com M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 45 MODERN equipment report for Retrotech. “The theory is that you can continue to add labor to solve your problems while the reality is that congestion and traffic and the ability to fill all those orders in the space you have is no longer feasible.” Cairns estimates that an automated solution can reduce the footprint required for two laborers to pack dunnage and seal and label a box by as much as 75%. That might be huge for a company that is seeing a 300% increase in the number of cartons out the door per day, since they’re not likely to find 300% more space and people to do that with a manual process. For customers not prepared to automate the entire packaging process, Cairns suggests the best business cases for automation are at the ends of the process: the construction of a rightsized carton and its presentation to use points, as well as sealing, labeling and preparing the carton for shipment. “Those two areas are seeing the most activity and have pretty clear paybacks.” For customers ready to radically revise their packaging processes, Leja recommends taking a holistic view. “It’s more than just automating some of the steps in the packaging process,” he says. “It’s looking at the integrated process and identifying which steps really add value when automated and which ones don’t.” For instance, one customer ranked each step by how important it was to have a human do the work. They decided to automate everything except quality assurance and validation. “That eliminated a full minute per case of monotonous labor,” Leja says. “The process was faster, but there was also a boost in morale among employees. They felt their roles became more strategic when they could focus solely on quality assurance, and not packing.” Right-sized packaging When a pair of reading glasses is packed into a box big enough for a pair of shoes, it consumes costly corrugate, wasteful void fill and expensive labor—while potentially angering the customer. New automated technology from companies like Packsize, Sealed Air, System Logistics and Retrotech shape each shipping container around the product, trimming the corrugate to fit the unique cube of the order. Before right-sized packaging, an operation might keep five, 10 or 15 different sized boxes on hand. The system determined the order size and the cartonization logic decided which box was best. “But if there are a virtually infinite amount of order sizes then math- 46 S E P T E M B E R 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com MODERN equipment report ematically you will average 40% air in those standard containers,” says Hanko Kiessner, CEO of Packsize. Right-sized packaging solutions can cut the needed quantity of corrugate by as much as 28%, while reducing filling material by 80% to 90%. These systems can also work as much as 40% faster with the same labor. But to create a customized box for each order, the system must know the dimensions of the order. One option is to capture the volumetric data right before packaging and then store it for future reference. Kiessner describes a self-learning database, which automatically populates the SKU list with volumetric data that becomes available for use across the enterprise. “The holy grail is to provide real-time shipping rates as an e-commerce customer is selecting goods and placing an order,” says Kiessner. “This integrates and optimizes data throughout the supply chain, from selecting the right box size to the right carrier and shipping mode.” Taking it one step further, new software can optimize automated packaging not just within a facility, but across an entire network of buildings. From a cloud-based server, companies can steer each order to the right building with the right inventory and through to the right packaging machine, says Kiessner. Automated packaging systems therefore offer improvements not only to tasks as simple as inserting documents into a box, but to objectives as big as the company mission itself. Traditional systems, where manual laborers make decisions on the fly, provide too many opportunities for miss- ing both of those objectives. “I look at the packaging area as a bit like war,” says Reader. “You can make a general plan, but as the ships get closer to the beach, all hell can break loose and you’ve got to have a good way of managing that.” 䡺 FOUR THE PERFECT TWOSOME TO COMPLEMENT YOUR WAREHOUSE SPRINKLER SYSTEM Companies mentioned in this article beumer.com dematic.com FORTNA: fortna.com INTELLIGRATED: intelligrated.com ORBIS CORP.: orbiscorporation.com LOGOPAK: logopakcorp.com NUMINA GROUP: numinagroup.com PACKSIZE: packsize.com RETROTECH: retrotech.com BEUMER GROUP: DEMATIC: SSI SCHAEFER SYSTEMS INTERNATIONAL: ssi-schaefer.us SYSTEM LOGISTICS: MAINTAINS 3” FLUE SPACE INSTALLED & TRUSTED WORLDWIDE COMBINES A SMOOTH STORAGE SURFACE WITH RACK SHELF POROSITY A SIMPLE, COST EFFECTIVE WAY TO KEEP STORED MATERIAL OUT OF REQUIRED RACK TRANSVERSE FLUE SPACES PUNCHDECK.COM FLUEKEEPER.COM system-logistics.it VANDERLANDE INDUSTRIES: vanderlande.com mmh.com A PROVEN SOLUTION DACS inc. toll-free: +1-866-400-8107 M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 47 MODERN productivity solution By Josh Bond, Associate Editor Brewery reduces labor with floor-level palletizer New equipment and software more than double throughput while reducing strain on workers. Deck 2 lines U tah Brewers Cooperative, a small regional brewery that produces 25 different ales and lagers, realized in November 2010 that it needed a less labor-intensive way to palletize outgoing product. After installing a floor-level palletizer, the company was able to reassign workers to more value-added areas while more than doubling throughput. The company had installed a new, faster bottling line that produces 37,500 barrels per year. But, Dan Burick, director of brewing operations, realized that this increased production would result in more strenuous labor for employees who were palletizing by hand. He considered adding a palletizer to the packaging line. Utah Brewers was able to install and start-up the new palletizer (Columbia Machine, palletizing.com) in-house. “Our palletizer has been a great addition to our brewery, reducing some of the more difficult and back-breaking labor and allowing us to cross train our employees in other areas,” says Burick. “The machine is robust. Delivery was on time and the two days of 48 S e p t e m b e r 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G training at the facility were very helpful.” Before the new bottling line and palletizer, two employees were stacking cases on pallets while a third delivered finished pallets to the shrink wrapper. Cases were stacked at an average rate of 6.25 per minute. Now, one person loads the palletizer with empty pallets in the morning and one forklift driver moves the finished pallets. A total of two fulltime positions were reassigned to more value-added tasks, and cases are now automatically stacked at a rate of 16.46 cases per minute. With various package sizes being palletized at Utah Brewers, the palletizer must be flexible and operator friendly. With the palletizer’s on-board software, the company is able to squeeze even more productivity from the palletizing process. Burick adds, “The product manager software is great. We can set our own patterns and adjust things on the fly, which is nice. It is a very dependable and operator friendly machine with 98% uptime.” mmh.com MODERN productivity solution By Josh Bond, Associate Editor Custom storage containers enable growth and optimize operations PK USA optimizes parts storage and materials handling to continue growth without expanding its warehouse. T o continue growth, PK USA, a primary supplier of metal body, chassis and plastic injection parts for domestic and international automotive companies, had to optimize operations. The company was using eight different types of containers for storage in existing warehouse space. “Many of our storage containers used space inefficiently, had weight and stacking limitations, and required frequent replacement because they broke down in our environment,” says Dan Sizemore, a senior engineer at PK USA’s Shelbyville, Ind., facility. “If we hadn’t sought new custom containers, we would have had to expand our warehouse to meet the demands of continued growth.” By deploying a series of custom containers, the company was able to increase storage capacity by 30% while improving labor efficiency by 20%. According to Sizemore, for instance, a new prod- 50 S e p t e m b e r 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G uct needing parts storage between die set ups was not stackable with wood pallets or wood containers, and required considerable storage space. Sizemore recommended adding a few new custom containers (Steel King, steelking.com) that would be fully stackable and accessible from all sides. This would consolidate storage from eight container types to four custom container types. “Because we’re now able to store at least 30% more parts in the same warehouse space, we’ve avoided expanding our plant simply to store more parts,” says Sizemore. “We’re able to stack six high with the new containers, versus only four high at best with our previous containers.” For the parts storage that was unstackable using wood pallets or wood containers, a special rack with adjustable pins was developed that enables securing the part, as well as stacking the racks up to four high for space savings of at least 75%, says Sizemore. “Unlike racks that are welded in a solid stand for a particular part and must be discarded once the part has finished its lifecycle, the new pin racks are adjustable so we’ll be able to use them for new parts far into the future,” says Sizemore. “Where the lifecycle of a typical automotive part is about four years, we expect to get flexible use of our specialized racks for 40 to 50 years, with ROI in about two years.” Reducing the need to track, inventory, repair or replace eight types of containers down to four durable containers and specialty racks has improved labor efficiency by at least 20%. 䡺 mmh.com supplychain247.com Everything you need, every way you need it. Supply Chain 24/7 is the ultimate online business resource for transportation, distribution, logistics and supply chain professionals. Find everything you need when researching companies, trends, and industries. Your best business resource for: s News s Best practices s Trends s Case studies s White papers s Webcasts s Research s Special reports s Blogs and much much more! Featured companies that are relevant to the specific topic Trending news and features Visit supplychain247.com. Begin your experience today. Search engine can search across content elements and by specific companies A SPECIAL SUPPLEMENT TO: Wireless +Mobility: trends taking us closer to visibility Top industry analysts define the leading wireless and mobility trends that are helping logistics professionals work smarter and faster in an increasingly competitive business environment. BY BRIDGET MCCREA, CONTRIBUTING EDITOR W hen analyst David Krebs assesses wireless and mobile penetration across various industries, the logistics and transportation markets stand out as segments that consistently invest in equipment and solutions that help them operate in an increasingly untethered world. Whether they’re equipping delivery drivers with ruggedized devices, 52 S E P T E M B E R using handheld computers to track inventory, or relying on mobile devices to monitor the temperature of refrigerated goods as they make their way through the supply chain, it seems that today’s supply chain professionals have come to both understand and appreciate the value of a wireless world. “Some of the largest mobile and wireless deployments we’ve seen to 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G date have been instituted by the logistics and transportation segment,” says Krebs, vice president of enterprise mobility and connected devices at VDC Research. That positive momentum is pushing the industry closer and closer to a “completely wireless, realtime supply chain nirvana” and helping companies work smarter, better and faster in an increasingly competitive business environment. mmh.com Selective Pallet Rack Pallet Flow WAREHOUSE RACKING S O LU T I O N S Wide Span Drive-In / Drive-Thru www.interlakemecalux.com (877) 632.2589 A SPECIAL SUPPLEMENT TO: Over the next couple pages we’ll explore the eight leading wireless and mobility trends taking place in the industry, and then we’ll identify how supply chain professionals can effectively leverage these trends to their advantage. Trend tracking Supply chain operations around the world have certainly benefited from the ongoing release of new wireless products and applications designed to streamline logistics and transportation management. Where it is providing better transparency, prompting shippers to discard their historically wired ways, or allowing smaller companies to affordably beef up their IT infrastructures, mobility is having a major impact across the supply chain. After interviewing the market’s leading analysts, eight trends emerged that all supply chain professionals should be aware of in 2013 and beyond: Wireless now accommodates a sharper focus on efficiency and transparency. Workers in the supply chain are under constant pressure to reduce costs as part of larger, company-wide cost reduction strategies. Even minimal increases in fuel and labor costs, for example, can throw a firm’s bottom line out of whack when these expenses are multiplied across the entire supply chain. To offset this challenge, companies are turning to wireless solutions that provide tracking and tracing capabilities that result in improved efficiency and transparency. “There is a vested interest by organizations to ensure that their operations are performing at maximum efficiency,” Krebs points out, noting that manual processes— 1 54 S E P T E M B E R many of which are still in use—simply don’t cut it anymore. High-tech options like wireless proof-of-delivery solutions for trucks, for example, can help managers gain both efficiency and transparency outside of the four walls of the warehouse. run applications, then it isn’t helpful,” says Simon Ellis, practice director at IDC Manufacturing Insights. Over time, Ellis expects more providers to create mobile versions of their applications and mobile-enabled equipment that is both appealing and useful for Transportation solutions (USD millions, CAGR 2011-2016) 1,500 Rugged mobile devices Commercial grade mobile devices Software 1,250 Professional services 1,000 750 500 250 0 2011 2012 2013 2016 Source: VDC Research The end user is dictating mobile consumption and driving the market. Knowing how efficient and effective it can be to work without wires, today’s professionals are putting pressure on equipment and software suppliers to build more devices and solutions that operate wirelessly. That pressure has extended out to the end-to-end supply chain, where vendors are scrambling to accommodate the requests. “At the end of the day, if you’re a vendor and your mobile device doesn’t 2 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G end users who are striving to gain visibility across the entire supply chain. Mobile solutions are pushing users out of their “manual” comfort zones. Because they don’t require hard wiring or elaborate IT infrastructures, today’s wireless solutions—many of which can be run in the cloud—are helping companies of all sizes make the jump from manual, fax-based systems to highly automated solutions literally overnight. Krebs recently worked with a com- 3 mmh.com STORING LIFTING GUARDING Get the most out of your space Move inventory with ease Protect your facility THE NEW STANDARD FOR HEAVY LIFTING. The 4XLift™ offers more safety features than any other 4-post VRC on the market. When you select a 4-post vertical lift to move heavy materials, specify the safest and the best. Wildeck’s heavy-duty 4XLift™ includes, as standard, the patented AutoSenz® D-Series Overload Detection System (U.S. Patent No. 7,408,317) that constantly monitors motor current and stops the lift in its tracks should a jam occur. Lifting Capacity: “Standard” – Up to 15,000 lbs. “High Load” – Up to 30,000 lbs. (higher capacities available) Carriage: Up to 12 ft. wide x 30 ft. long Carriage-Mounted Conveyor Integration option Lifting Height: Multi-Level Up to 150 ft. Loading Patterns: C, Z, 90 degrees or 4-sided Code Compliance: Approval guaranteed in all 50 States – meets ANSI/ASME B20.1 – “Safety Standard for Conveyors” CargoLok™ Carriage Gate with Alarm option – secures rolling loads SafeLock™ option: Locks carriage safely at upper levels Broken Chain Free-Fall System With more capacity, efficiency and safety builtin, the 4XLift™ from Wildeck will move your toughest and heaviest loads with ease. It’s a level of quality and craftsmanship you won’t find anywhere else. 800-325-6939 | WWW.WILDECK.COM ©Wildeck, Inc. 2013 W4XL 1303 AD A SPECIAL SUPPLEMENT TO: pany that moved its fleet of 3,500 trucks over to ruggedized handheld devices that drivers now use to capture, track, and report proof of delivery information in real time. Previously, the company was using a partly manual and partly Nextel phone solution on an intermittent basis for the same task. “This particular application proves that there are some cool things happening in the wireless market,” says Krebs, “but the fact that it took place in the last 12 months to 18 months also shows that a lot integration and automation upgrades still need to happen.” The smart phone is carving out a place for itself in the supply chain. Sure, they’re still not as physically robust as their ruggedized counterparts, but today’s smart phones—whether they are provided by the company or brought in by workers on a “BYOD” (bring your own device) basis—are staking a bigger claim in supply chain operations these days. And while consumer devices like the iPhone aren’t made to withstand the wear and tear inflicted by warehouse workers, truck drivers and delivery personnel, their vendors are beginning to introduce more robust equipment and protection options. “You can put a bumper around a smart phone, but you can’t save it from all of the damage, particularly in an outdoor environment,” says Krebs. “The idea that consumer products can incorporate features like fall, water and dust protection in the future certainly isn’t inconceivable.” 4 Wireless helps users create a more cohesive workforce outside of the four walls of the 5 56 S E P T E M B E R warehouse. Few would argue the positive impact that today’s mobile devices and capabilities have had on human communication and collaboration. The same holds true in the logistics organization, where drivers using mobile devices and solutions no longer have to go to the dispatcher to pick up their “instructions” for the day, and then follow them independently with little or a bigger interest in developing wireless supply chains—in particular, those that aren’t currently tied into large, enterprise-wide, wired technologies. In fact, she says one of the biggest obstacles that larger organizations run into when implementing wireless solutions is the fact that they’ve already invested significant dollars in wired systems. “When you don’t have Because they don’t require hard wiring or elaborate IT infrastructures, today’s wireless solutions—many of which can be run in the cloud—are helping companies of all sizes make the jump from manual, fax-based systems to highly automated solutions literally overnight. no other intervention. “Mobility creates tighter communication across the supply chain and between the individuals who are out in the field and the folks who are developing strategies back at corporate headquarters,” says Ann Dozier, vice president of consumer products, retail, and distribution for Capgemini Consulting. “Those higher levels of communication and collaboration translate into improved customer service,” says Dozier, “and a workforce that’s more focused on a point in time, versus a slip of paper.” Smaller, more nimble companies are using wireless to ramp up and improve their technology infrastructures. There’s little doubt that mobile allows companies to become more successful overall thanks to the expedited information sharing, portability and connectivity that it offers. Dozier sees smaller firms taking 6 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G large investments in current technology,” says Dozier, “it’s actually easier to move forward with mobile initiatives.” The mobile device and applications are being paired up with the individual worker in mind. Smart phones, tablets and ruggedized devices aren’t homogeneous and neither are the individuals who use these products on a daily basis. Dozier says that both companies and vendors have awakened to this fact, and notes that both parties are taking more time to match the right user up with the correct device. “Companies have to recognize that there are different devices for different people,” Dozier says, “and look hard at what device, data and applications someone may need to be able to the job.” As part of this trend, Dozier says many vendors are now working to separate their devices from the associated applications and are moving away 7 mmh.com *RDKHDGWDNH\RXUEHVWVKRW ,FDQWDNHLW NEW! Bulls Eye™ Floor Label NEW! Bulls Eye™ Rack Label Warehouse Floor and Rack solutions from our line of bullet-proof, durable products Positive feedback...Every time salesmmh@idlabelinc.com | 800.541.8506 x100 www.idlabelinc.com WAREHOUSE SIGNS RACK LABELS PREPRINTED LPN LABELS NATIONAL INSTALLATION SERVICES A SPECIAL SUPPLEMENT TO: from the age-old strategy of integrating technology into their devices on the assembly line. Mobile devices are still only as good as the information that’s available. Looking back at how much supply chain visibility companies have gained over the past two years—and how much they will gain over the coming two years—Ellis says much of that positive impact comes from the continued growth of wireless and mobile in the space. But none of that would be possible without the information itself, says Ellis, who points out that mobile devices are only consuming the information that’s 8 being made available to them. “You can have the best mobile device in the world, but the information is still the information,” says Ellis. “Mobility serves purely as a more flexible access point and a way for companies to get at the information that they need to make the best possible business decisions.” Wireless crystal ball Going forward, all of the analysts interviewed for this article say mobility will play an increasingly important role in supply chain management. Being able to “cut the wires,” it seems, can create substantial benefit across the supply chain and allow ship- pers more freedom to optimize their operations and improve visibility. No longer relegated to a desk, rolling computer stand or electrical socket, supply chain professionals continue to leverage mobile devices and applications nearly as quickly as vendors produce them. Ellis says that there’s no end in sight to the wireless supply chain movement. “We expect a nice upward tick in the use of mobile and an emphasis on better and smarter devices,” says Ellis. “It will be a steady, upward march for wireless as its adoption levels rise, the business case for it becomes clearer, and the number of available mobile tools grows.” 䡺 BIG FANS SMALL FANS MOVABLE FANS MISTING FANS OSCILLATING FANS ILLUMINATING FANS BIG ASS FANS. We created all these different fans to solve one problem–yours. 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Efficiency Promotes Productivity Dehnco offers a simple 4 step evaluation process that: Contact Us: Call: 847•382•1579 www.dehnco.com • Promotes Ergonomics • Creates Efficiency • Increases Productivity STEP : 1 STEP : 2 Evaluating Flow Identifying the Process STEP : 3 STEP : 4 Integrating Integrate Supplies and Work Area Design Equipment with the Process Required SCAN TO SEE NEW COMPONENTS Let Us • SPACE HELP Yo 300 Lageschulte St • STORA u Define and Resolve These Issues GE • HA P.O. Box 866 NDLING / DE SIGN • ERGONOMICS • WORKFLOW • SPACE Barrington, IL 60010 Ph: 847•382•1579 • Fax: 847•382•1615 FOCUS ON Totes & Containers Industrial grade totes stack and nest for storage, transfer and shipping Offered in nine sizes and three colors, the NST line of nest and stack totes stack (with or without lids) for storage and shipping, and nest when empty. Made of strong, high-density polymers, the totes will not rust, corrode or bend out of shape—even when fully loaded. Textured bottoms provide a no-slip grip on conveyor belts, while smooth surfaces are easy to clean. Ideal for food and pharmaceutical handling, the totes are manufactured from FDA-sanctioned materials. Akro-Mils, 800-253-2467, www.akro-mils.com. Pail cover eliminates gaskets Offered as a drop-in replacement for a standard gasketed cover on most filling lines (with only minor adjustments to existing capping equipment), the Tri-Seal 60 S E P T E M B E R gasketless openhead plastic cover works with standard 5-gallon, rigid-plastic pails. Because the cover eliminates the need for a gasket, concerns with gasket twisting, incomplete seating and gasket rebounding are averted. The pail cover is ideal for use with foods, adhesives, lubricants, building products and consumer products. Features include a primary inner plug cork seal unaffected by changing top loads, a secondary top flap seal that engages the lip of the pail, and a tertiary outer stretch seal for added security. The covers are made of 100% high-density polyethylene (HDPE), making them fully recyclable. BWAY, 800-527-2267, www.bwaycorp.com. 32 x 30-inch container has reduced collapsed height for improved return ratio The BN3230 bulk box with a 32 x 30-inch footprint may be specified with or without drop doors in 25- and 34-inch heights. Features include a non-sequential fold, a replaceable runner that snaps into place, and reduced collapsed height for a better return ratio. For cost savings, the container’s sidewalls feature a variety of fastener-free labeling options. Buckhorn, 800-543-4454, www.buckhorninc.com. Molded system totes for use with carousels and vertical lifts All-plastic reusable totes for food applications Impact-resistant Polylewton Stack-NNest containers are injection-molded from high-density polyethylene. Capable of holding up to 70 pounds per tote (for a total of 300 pounds when stacked), the containers stack when full and nest at a ratio of 4.5:1 when empty to maximize space. The easy-to-clean containers employ material FDA approved for direct food contact and resist oil, water, steam, most chemical solvents and temperatures from 0°F to 120°F. They are compatible with chrome-painted metal dollies, shelving units and storage systems. Fully recyclable, the containers are offered in a variety of footprints, from 20.1 x 13 to 30.1 x 24 inches, and in heights up to 15.1 inches. LEWISBins+, 877-975-3947, www.lewisbins.com. 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G A line of molded system totes is ideal for use with any vertical carousel, horizontal carousel and vertical lift application. Featuring sleek construction, the durable, straight wall totes provide 100% cube utilization. Offered in a range of standard and custom colors, the totes inter-stack while organizing inventory with patent pending dividers that easily snap-lock into the tote to eliminate part migration. For easy handling, the totes include an ergonomic pull handle and can be marked with a custom embossed logo in the front of the tote. Flexcon Container, 908-871-7000, www.flexcontainer.com. mmh.com FOCUS ON Totes & Containers Automated Vertical Storage Systems Textured container surface makes label removal easy Offered in a variety of sizes, NXO StakPak containers have been enhanced with a textured surface area so labels can be easily removed, and no label placard is needed. This feature eliminates unnecessary automation fields and cardholder pins. The containers’ textured surface can be optionally added to all four sides, the two short sides, two long sides or two adjacent sides. Container dimensions range from 24 x 15 x 7 inches to 24 x 22 x 14 inches. For easier handling, a 24 x 15 x 14-inch model can be equipped with optional, molded-in hand holes. All of the units accommodate custom dunnage to protect parts during shipment, and sport a standard “Place Label Here” hot stamp on the textured surface. Orbis, 800-890-7292, www.orbiscorporation.com. Organize small parts storage with shelving, bin package Offered as a complete package, the Euro Drawers shelving system includes both sturdy open or closed steel shelving and bins for economical small parts storage. The system offers a choice of bin and shelving sizes. Bin colors include blue, yellow, gray or red for color coding stored products to simplify order picking and inventory control. The heavyduty, high-grade gray shelving handles up to 400 pounds of capacity per shelf. Other shelving finish options include epoxy-coated, chrome, solid stainless and solid galvanized. Quantum Storage Systems, 800-685-4665, www.quantumstorage.com. Reusable transit packaging keeps produce fresh To reduce waste and keep vegetables and fruits fresh, the Maxinest reusable transit packaging crate is offered as an alternative to cardboard and wood boxes. Washed between uses, the containers are perforated with holes to permit cooling and ventilation and extend produce life. The units are stackable and come in 20 different models—including a conveyable version with a reinforced base that interfaces with automated filling, weighing and handling equipment—to accommodate a variety of applications within the grocery industry. Schoeller Allibert, 44-0-121-506-0100, www.schoellerallibert.com. It All Adds Up To VALUE Small parts are expensive. Traditional shelving eats up valuable floor space and exposes parts. What’s more, parts can be tough to find and reach; accurate inventories a challenge. The Lauyans Small Parts Storage System (SPSS) is a USA manufactured solution offering high density storage utilizing vertical space for greater footprint capacity, worker safety, security, labor savings and the most competitive pricing available. Before you decide to buy any Automated Storage System, go online and check out our pricing. www.SPSSonline.com VALUE IItt All Adds UUp p To VALU E Lauyans & Company, Inc. 1-866-LAUYANS (528-9267) USA Manufactured Since 1986 mmh.com FOCUS ON Who’s Driving Your Lift Truck? Totes & Containers Universal tote line includes box, partitions for custom part organization Offered as a complete system, TransGuard Universal Totes include a standard molded expanded polypropylene (EPP) foam tote/box with a series of slots molded into it to allow the insertion of plastic corrugated partitions. For inventory storage and organization, an operator inserts the correct amount of partitions and configures them to allow the correct spacing for a specific product. Should tote contents change, the partitions can easily be removed and rearranged. Sonoco Protective Solutions, 847-632-9694, www. sonocoprotectivesolutions.com, www.sonoco.com. Handle high-density dry products with low-profile bulk container Control vehicle access and get operator accountability with wireless vehicle management: s No more unauthorized drivers s No more anonymous accidents s Improved safety/reduced risks s And much, much more Improve fleet safety, reduce material handling costs, and increase efficiency with PowerFleet ® and PowerBox™ from I.D. Systems, the global leader in wireless vehicle management. To learn more call us at 201.678.5565 or visit id-systems.com. The P-340 Ship Shape reusable bulk container features a stout, low profile that accommodates payloads up to 1,000 pounds. Standing 30 inches high on a standard footprint, the container is ideal for storage and transportation of products with high bulk densities and/or high compaction rates. When covered, the units stack three-high to cube out standard trailers. The containers are rotationally molded in a single piece from 100% polyethylene to create a smooth, non-stick interior. Dual side projections allow a dumper to establish a firm, non-slip grip and rotate the box 180 degrees for product discharge. For customization, optional accessories include fork safety tubes, casters, lockable covers and custom colors. Meese Orbitron Dunne, 800829-4535, www.shipshapecontainers.com. Lockable, latched PVC/plywood storage cases A line of storage cases constructed of PVC-laminated plywood is offered in three sizes, ranging from 12.5 x 16 x 12.125 to 17.625 x 23.125 x 17.325 inches. The small, medium and large boxes can be ordered independently or as set. Each case interior is completely lined with foam to protect contents. For security, two locking latches are included. The smaller units nest inside the larger units, and all include two carrying handles—one on each end. Capacities range from 70 to 90 pounds. Vestil Manufacturing, 800-348-0868, www.vestil.com. Tel: +1.201.678.5565 sales@id-systems.com s www.id-systems.com mmh.com PRODUCT Showcase Transferring Pallets? Compact controller integrates sequence, motion, temperature and vision The compact L series controller integrates sequence, motion, temperature and vision into a single package to support fully automated machinery that weighs, palletizes and stretch wraps loads. Programmed with GX Works2 software, the controller enables multiple working modes to be pre-set and engaged with a graphic operator interface touchscreen. For palletizing, the unit delivers precise motion control to package and stack products faster and with greater accuracy. When stretch wrapping, the controller uses a servo system that improves tension control to ensure loads are secured with maximum stretch without excess film or film ripping. Mitsubishi Electric Automation, 847-478-2100, www.meau.com. Self-leveling and electric hydraulic palletizers A new line of palletizing lifts includes mechanical spring and air spring self-leveling models as well as electric hydraulic units for more exact positioning. All of the units feature finger-protected turntable rings over solid platforms to keep debris from falling through into the lifting mechanism. To further prevent debris issues, the turntables incorporate clean out holes and optional metal tops. The mechanical and air spring models have fork truck mobility built into the lift platforms, eliminating fork pockets around the base frame. Delivered fully assembled, the palletizers are plug and play upon arrival. Advance Lifts, 800-343-3625, www.advancelifts.com. - Enhance safety for warehouse personnel - Category 3 safety compliant - Prevents contamination from entering production areas - Safer, cleaner & faster than other load transfer devices Scan for a FREE white paper on pallet handling practices 1-800-628-4065 www.loadtransfer.net Stainless steel palletizer for harsh plant environments The 72AGSS stainless steel, low-level palletizer is ideal for harsh plant environments with high humidity, moisture or corrosive factors caused by foods, beverages or chemicals. Washdown safe, the machine includes components rated to NEMA 4X specifications. Intended for high-speed applications—including cases, bags, trays, totes or multipacks—the system reaches speeds of 50 cases per minute and four bag layers per minute. Features include a welded and bolted heavy gauge frame, an elevator table reinforced with crossbar beams to eliminate load stress, and gently tapered table edges to ensure stable layer transfer. To eliminate drive motor stress, the table is counterweighted. Vertical transfer of the elevator table is powered by a variable frequency motor drive that eliminates hard starts and stops. A-B-C Packaging Machine, 800-2375975, www.abcpackaging.com. mmh.com M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 63 /RQJHU/DVWLQJ%HOWV PRODUCT Showcase Integrated palletizer, stretch wrapper system %HWWHUWKDQ /LIHWLPH :DUUDQW\ z $EXVH5HVLVWDQW%HOWVZRUNZKHUHRWKHUVIDLO z 6XSHU6WURQJ-RLQWVDUHYLUWXDOO\XQEUHDNDEOH z +LJK7HQVLRQ%HOWVPRYHKHDYLHUORDGV z 6XSHU5HG%HOWVGRXEOHFRQYH\RUFDSDFLW\ 1HZ 6SOLW/LQHVKDIW6SRROV +LJKSUHFLVLRQ5HDVRQDEOHSULFH (DV\WRLQVWDOO=HURGRZQWLPH &DQEHORFNHGWRVKDIW(OLPLQDWHV QHHGIRUNH\HGVSRROVDQGVKDIWV 'XUD%HOW )D[ZZZGXUDEHOWFRP Take the Bulkiness Out of Bulk Storage Vidmar® STAK System® The ARBOT palletizer integrates a Motoman five-axis robot with an automatic stretch wrapper, pallet loader and pallet dispenser for end-of-the-line handling of cases, trays and other products. The palletizer forms the desired pattern layer stacks onto the pallet in a tight, uniform configuration. To accommodate different product sizes, both pattern configuration and layer counts can be quickly changed over. Constructed with heavy-duty reinforced structural steel and a non-corrosive baked on powder coat finish, all movement is controlled by an Allen-Bradley processor and a userfriendly operator interface. ARPAC Group, 847-678-9034, www.arpac.com. Produce air-filled protective packaging on-demand The portable, benchtop AirPouch FastWrap system produces cellular cushioning wrap and air-filled tubes on demand, reducing storage costs for large, bulky rolls of pre-filled protective wrapping material. Using high-yield boxes of flat, preformed bubble film material, the machine inflates the film at the packing station. Each box of material produces 1,385 linear feet of wrap—in 12-inch widths with perforations every 10 inches—and employs a patentpending honeycomb pattern to allow air transfer between cells for maximum product protection. Automated Packaging Systems, 330-342-2000, www.airpouch.com. Protect pallet loads with stretch hood film Save up to 75% of your floor space by storing up, instead of out, with STAK. The ultimate high-density system, STAK maximizes space savings, load capacity, operator efficiency, and safety. For more details or to schedule a free onsite analysis, contact a Territory Sales Manager today at 800-523-9462. 64 S E P T E M B E R StanleyVidmar.com/UP 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G For watertight protection of pallet loads, the stretch hood machine applies packaging film to all five sides of a load with horizontal and vertical tensile forces for load stability. The film hood is drawn over the pallet stack, forming a stable product and load carrier unit. Ideal for use with loads composed of bags, crates, trays or cartons, the film material protects the load against weather, dust, moisture and transport hazards. The machine consumes minimal energy and has a low compressed air requirement. No heat energy is needed or produced, and the unit works with all types of film, including recyclable. BEUMER Group, 49-0-2521-24-317, www.beumergroup.com. mmh.com PRODUCT Showcase Hybrid pallet combines wood, recycled plastic The Relius Solutions green line armor hybrid pallet features oak stained boards encapsulated on both ends with molded, recyclable plastic bumpers to withstand impacts and increase durability. Equipped with a radio-frequency identification (RFID) tag for more efficient inventory management, each stackable, rackable pallet measures 48 x 40 x 5 inches. The four-stringer pallets hold up to 10,000 pounds when moved by forklift (15,000 pounds on the floor) and are covered by a 10-year warranty. C&H Distributors, 888-316-2223, www.chdist.com. classified Label Holders Label Holders Export and Domestic Pallet Solutions 800.242.3919 www.aignerlabelholder.com PRES PALL info@aignerlabelholder.com ŹMinimize Waste Benches Cut Packaging Co ŹFree of Bugs, Mold TCP and TCA Che ŹReduce Fork Truck Traf¿c ŹReduce Shipping Costs ŹIncrease Product Protection ŹReduce Shipping Damages ŹCerti¿ed SustainaE Which Pallet Will You Choose? LITCO International Pallets To advertise, or for more information contact: Jennifer Drevline, 847-223-5225, ext. 11, jenniferd@caseyreps.com mmh.com Export and Domestic Pallet Solutions 855-296-2891 t www.litco.com SPACS95-8/12 M O D E R N M AT E R I A L S H A N D L I N G / S E P T E M B E R 2013 65 MODERN 60 Seconds with... Laszlo Horvath Virginia Tech University TITLE: Assistant professor and director of the Center for Packaging and Unit Load Design LOCATION: Blacksburg, Virginia EXPERIENCE: A professor at Virginia Tech since 2010, Horvath and his colleagues are in the process of developing new curriculum and state-of-the-art research programs that bring together education, research and solutions for industry. PRIMARY FOCUS: The program’s objective is to help industry save resources by focusing on the role of transport packaging and the unit load in the supply chain. Modern: Laszlo, you’re the director of the Center for Packaging and Unit Load Design. Not that long ago, the focus of the center was unit load design. Talk about that evolution. Horvath: When the program was founded, we focused on the component parts of a unit load. We began with pallets. Later, we added unit load design. Today, our program encompasses the whole system, starting with the design of the unit load and packaging materials to the way that load moves through the supply chain. It’s the whole system and not just the component parts. We are working with primary and secondary packaging. Similarly, our students are learning everything from marketing to supply chain management. We don’t just train packaging engineers. Our goal is to train packaging managers who can 66 S E P T E M B E R tell the designer what the design should look like, work with materials handling engineers, and talk to logistics people about how the load will work in the trailer. We’re the link between these multiple disciplines. Modern: Has packaging become a higher priority among end users, especially with the increasing number of packages shipped because of e-commerce? Horvath: Yes it has and not just because of e-commerce. I recently talked to an engineer from a large electronics company at a transport conference. He talked about 2 0 1 3 / M O D E R N M AT E R I A L S H A N D L I N G how packaging was always an afterthought. They designed great products, then they just threw them in a giant box with a lot of protective packaging and shipped it to the customer. Two years ago, they hired a packaging engineer who has found ways to shrink their packaging to a fourth of its previous size and still ship it safely to the customer. E-commerce is having an impact because you have to ship so many products. Companies are realizing that shipping a trailer load is relatively easy. LTL and parcel shipments are a whole different ball game. It’s forcing them to think about packaging. 䡺 mmh.com YOU HAVE TO LOWER OPERATING COSTS. THEN YOU HAVE TO LOWER THEM AGAIN. WITHOUT SACRIFICING PRODUCTIVITY. Lowering operating costs is what the Hyster® Fortis line does best. Hyster Company is proud to be ranked #1 by current customers in Total Cost of Ownership.* And when you purchase a Fortis® lift truck, know that each one comes with the Hyster legacy of building tough lift trucks. Lower costs. Better ROI. Tougher trucks. Bring it. For more information, visit hyster.com/TCO. *Peerless Media Research Group, 2011 12HST5682 © 2012 Hyster Company. Hyster, and Fortis are registered trademarks of Hyster Company. hyster.com