PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

mmh.com

®
August 2009

BIG PICTURE

Affordable MODERN EXCLUSIVE REPORT

Top 20 lift truck
innovation
page 18
suppliers 25
SPECIAL PACKAGING COVERAGE
• End-of-the-line
packaging 29
• Dunnage 38
• Palletizer products 44

( )
 Tough times don’t last.
But tough lift trucks do.

Strong, efficient and built for the job—ants and Toyota lift trucks both symbolize productivity.
In challenging times, or in the best of times, they just keep working. Toyota. The world’s #1 lift truck. 800-226-0009 • EarthsNumberOne.com
 CONVEYABLES
BREAKING NEWS YOU SHOULD KNOW

Reddwerks acquires SeayCo Integrators

ENHANCING ITS SOFTWARE ware. Reddwerks’ support teams
PRODUCT LINE and extending and online portal will be available for
its reach into complex conveyors both Reddwerks and SeayCo clients.
and sorters found in large-scale The company will retain key SeayCo
distribution facilities, Reddwerks customer support and development
(www.reddwerks.com), a provider of resources to ensure continued success
warehouse performance management with the SeayCo product line and
(WPM) software and solutions, has services teams. The combined R&D
completed its acquisition of SeayCo team will continue Reddwerks’ focus
(www.seaycointegrators.com), a on improving the WPM software, with
developer of advanced warehouse the 4.0 version scheduled for comple-
control systems and sortation soft- tion in 2010.

PMMI launches online

“Use Reusables” goes regional troubleshooting course
LOCAL CALIFORNIA AGENCY STOPWASTE.ORG (www. THE PACKAGING
stopwaste.org) received a $35,000 grant from U.S. EPA MACHINERY
Region 9 to expand the “Use Reusables” campaign into MANUFACTURERS
communities throughout California’s Bay Area. The campaign INSTITUTE (PMMI,
helps businesses reduce costs and improve environmental www.pmmi.org)
performance by replacing limited-use pallets, boxes and has launched
other transport packaging materials with reusable alterna- “Troubleshooting
tives. “Use Reusables” was launched in 2007, in partnership Packaging Machinery,”
with the Reusable Packaging Association (www.choosere- an online self-study
usables.com), a non-profit trade association representing course open to all
manufacturers, dis- packaging profession-
tributors and others in als. The e-course is offered through PMMI U,
the reusable transport the institute’s training and development effort.
packaging industry. Developed in cooperation with the University of
The campaign pro- Florida, the course presents entry-level theory,
vides free educational process and logic of troubleshooting and applies
resources, training those ideas to packaging operations. It brings
workshops and principles to life with animation, video and inter-
expert advice to help active exercises, and teaches a logical approach
businesses transition to troubleshooting, so technicians understand
to reusable transport what questions to ask—and why—to locate the
packaging. most likely cause of a problem before making
adjustments or repairs.

Who has the oldest working bar

code device?
MAKE OLD BAR CODE technology new. Ryzex, (www.
ryzex.com) a mobile technology services company, has
launched a contest to identify the world’s oldest working
bar code data collection device. “The Big Upgrade”
(www.bigupgrade.com) competition provides partici-
pants with a chance to turn old data capture equipment
into new technology. The winner will receive a new hand-
held computer from Psion Teklogix (www.psionteklogix.
com) to replace their legacy device. To be considered,
participants need to provide contact and device informa-
tion, including a photo of their equipment in action.

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 3

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 VOL. 64, NO. 8

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,

WAREHOUSING AND MANUFACTURING

Sarah Carlson, Jervis B. Webb and MHIA’s

AGVS industry group, page 50

DEPARTMENTS & COLUMNS

COVER STORY 3/ Conveyables
BIG PICTURE
7/ This month in Modern
18 Affordable innovation 17/ Lift truck tips: Leasing
With the economy in the tank and end users reluctant to spend, the 44/ Product Focus: Palletizers
materials handling and supply chain software industries are coming
50/ 60 seconds with...
up with new ways to put innovation and automation within everyone’s
reach.
NEWS
9/ Total RFID revenue expected to exceed
SPECIAL PACKAGING COVERAGE $5.6 billion this year
EQUIPMENT REPORT 10/ Sasaki named president of Toyota
29 At the end of the line Industrial Equipment
Here are three examples of best practices in end-of-the-line 11/ ISM says manufacturing up slowly,
packaging that might make a difference in your facility. positive PMI imminent
PRODUCTIVITY SOLUTION 12/ Crown to kick off LPG
38 Safe travels; lower costs 13/ ID Label acquires Universal Label
Aviation equipment supplier uses a versatile packaging system to cut Technologies
expenses and protect products during shipping. 14/ Updated carousel and VLM planning
PRODUCT FOCUS tool now available
44 Palletizers 15/ From our blogs: How big is your (carbon)
footprint? Wal-Mart wants to know

FEATURES Modern Materials Handling® (ISSN 0026-8038, (GST # 123397457), is

SPECIAL REPORT published monthly by Reed Business Information, 8878 Barrons Blvd.,
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For the first three fiscal quarters of 2008, worldwide lift truck sales Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-
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 ®
T HIS MON T H IN Mode rn
EDITORIAL OFFICES
225 WYMAN STREET MICHAEL LEVANS
Waltham, MA 02451 GROUP EDITORIAL
(781) 734-8000
DIRECTOR

Michael Levans
Group Editorial Director
michael.levans@reedbusiness.com

Bob Trebilcock
Executive Editor
robert.trebilcock@myfairpoint.net

Noël P. Bodenburg
Executive Managing Editor
noel.bodenburg@reedbusiness.com
Fueling the pioneer spirit
Lorie King Rogers
Associate Editor
lorie.rogers@reedbusiness.com
THERE’S A VERY succinct reason we feature their belts.
Sara Pearson Specter
Editor at Large progressive, innovative materials handling “The ‘Catch 22’ is that end users who
sara@moxiemarketingllc.com
practitioners on the cover of Modern month want to take a leadership position in their
Roberto Michel
Editor at Large after month: We want to showcase the best industry have to innovate to stay ahead
robertomichel@new.rr.com
of the best, but we also want to help push of the game; but in this kind of economy,
Tom Andel
Columnist the slow adapters over the fence. innovation may no longer be a line item
Jeff Berman There are a couple of common charac- on the budget,” says Trebilcock. “I wanted
Group News Editor
teristics that we find in these leaders. First, to find out what our industry is doing to
Robert Eckhardt
Senior Art Director they very rarely make snap decisions to keep materials and information handling
Daniel Guidera apply a new technology or to automate solutions within the reach of our custom-
Senior Art Director/
Illustration without weighing the ROI and measuring ers…and what I found is that there’s a lot of
Norman Graf the ultimate benefit to the company. affordable innovation going on.”
Director of
Creative Services In fact, these true visionaries have made We hope this new feature fuels your
advanced materials handling and distribu- pioneer spirit.
Brian Ceraolo
Group Publisher tion a core component of the company’s Editor’s Note: Like innovation, continuing
greater supply chain mission—or if they’re education is another critical element that
EDITORIAL ADVISORY BOARD like Kroger, who graced our cover back in can’t take a back seat during these tough
Ron Giuntini May, they’ve set out to flip their vertical times. To help meet this need, Modern
OEM Product-Services Institute
market on its head starting with the process continues its series of educational events
John Hill
eSync inside their four walls. with the launch of our live webcast devoted
Susan Rider Second, true innovators never stop inno- to the results of the 2009 Lift Truck Usage
Rider & Assoc.
vating, not even during the worst economic Study on Thursday, August 27, at 2:00 p.m.
Ken Ruehrdanz
Dematic climate of their lifetimes. They’ve come to Eastern. You can register now at mmh.
Dr. John Usher realize that innovation doesn’t necessar- com/lifttruck09.
University of Louisville
ily come with a huge price tag; in fact, it’s Our lift truck blogger/columnist Tom
Col. Alan B. Will
2d Marine Logistics Group often done best on a shoe string or through Andel will lead a panel discussion on the
Brett Wood precisely targeted investment designed to results of the study and identify the char-
Toyota Material Handling USA
solve the most pressing problems first. acteristics of the fleet managers who have
BOSTON DIVISION Well, this month we’ve set out to keep optimized this vital piece of equipment and
Mark Finkelstein
President - Electronics &
that ambitious set on the fast track, but mastered the art of balancing productivity
Manufacturing Division we’re also looking to give a little push to and safety. The panel will also go behind
REED BUSINESS INFORMATION
those managers who are still on the fence. the numbers to analyze the most common
Tad Smith On page 18, we’re offering the first in mistakes operators are making today.
Chief Executive Officer
our series of “Big Picture” features simply So, do you think your lift truck fleet is
John Poulin
Chief Financial Officer & titled “Affordable innovation.” Executive advanced? Attend this session and mea-
Executive Vice President
Editor Bob Trebilcock takes a look at how sure just how well you’re doing compared
MAGAZINE SUBSCRIPTIONS
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available at:
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 Di@blog
best of Modern’s blogs
Company Briefings | Bob Trebilcock
Cash for clunkers in materials
handling?
www.mmh.com/blog/clunkers
Takeaways | Tom Andel
Lift trucks and energy consumption
www.mmh.com/blog/energy

DATA CAPTURE

Total RFID revenue expected to

exceed $5.6 billion this year
ABI RESEARCH PREDICTS RFID systems revenue by primary application
STRONG RFID GROWTH FOR Traditional vs. Modernizing applications
SUPPLY CHAIN MANAGEMENT World Market Forecasts: 2009 and 2014

ITEM-LEVEL TRACKING IN THE

Total:
NEXT FIVE YEARS. 2009 $3.9 billion $1.7 billion
$5.6 billion

BY BOB TREBILCOCK, EXECUTIVE EDITOR

Total:
2014 $4.9 billion $4.3 billion
DESPITE THE DOWNWARD TURN $9.2 billion
in the global economy, total rev-
enue earned from radio frequency
Traditional applications* Modernizing applications**
identification (RFID) transponders,
readers, software and services is * Includes: access control, automobile immobilization, AVI and ID documents
expected to exceed $5.6 billion in ** Includes: animal ID, asset management, baggage handling, cargo tracking & security,
POS-contactless payment, RTLS, supply chain management and ticketing
2009, according to the latest market
data from ABI Research (www. Source: ABI Research

abiresearch.com), a New York-based

market intelligence company spe-
experiencing an 11% compound • Point-of-sale contactless payments
cializing in global connectivity and
annual growth rate (CAGR) through (23.7%); and
emerging technology.
2014. Analysts expect the market to • Animal ID (22.8%).
“The recession has had an undeni-
reach more than $9.2 billion in 2014, Laird said the RFID market
able effect on deployment plans,”
or approximately $7.62 billion with continues to be worthy of cautious
said ABI research director Michael
consumer automobile applications optimism in the near to mid-term,
Liard, “but despite some project de-
excluded. particularly in the closely watched
ferrals and terminations, there will be
ABI Research’s “RFID Annual passive UHF segment.
market growth, albeit fragmented.”
Market Overview” cites that among “Although the RFID market faces
ABI Research estimates the RFID
the modernizing applications, they economic challenges, ABI Research
market was $5.36 billion in 2008.
expect the strongest five-year (2008- would not characterize it as being
Excluding consumer automotive ap-
2014) revenue growth to be realized in a state of despair or turmoil. We
plications, the market size is forecast
within five applications segments: do not anticipate near-term market
to be $3.71 billion, representing
• Supply chain management item- contraction based on economic
9.1% growth over 2007.
level tracking (22.9%); conditions. However, anticipated
ABI Research anticipates annual
• Cargo tracking and security growth rates may not be as robust
growth to remain steady over the
(22.7%); as in previous years,” Liard said.
next five years, with the total market
• Real-time locating systems (28.2%); “In fact,” Liard added, “many in-

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 9

NEWS NOW
New weekly
e-newsletter
Modern has launched “This Week in
Modern.” Our editors created this new
weekly editorial e-newsletter for the busy
materials handling and manufacturing
professional. The goal is to keep you up
to speed on the latest breaking news and
new products that are currently hitting
the market. We’ll also be featuring our
most intriguing blog posts from the previ-
ous week to get you more involved in the
materials handling conversation. Sign up
here: reg.mmh.com/newsletter/subscribe
MMH goes
Mobile
We know how busy you are. We know
how sometimes all you have on the go is
your phone. Now, you can take Modern
with you. Check our daily news and prod-
ucts any time, any where. Bookmark our
new mobile site at: mobile.mmh.com.
Lift truck
Webcast
Tune in for the live results of Modern’s
2009 Lift Truck Usage Study. In this Web-
cast entitled “So, you think your lift truck
fleet is advanced?” Modern’s lift truck
blogger/columnist Tom Andel leads a
discussion around the complete results of
this exclusive study.
Thursday, August 27 at 2:00 p.m. EST
Register: mmh.com/lifttruck09
Follow us on
Twitter
Stay connected: Get breaking news,
updates to our site, as well as special
industry announcements. Follow Modern
on Twitter at: @ModernMHMag. In addi-
tion, you can follow our sister publication
Material Handling Product News at:
@mhpn. You can also find Modern’s page
on Facebook and become a fan.
10 A U G U S T 2 0 0 9 / MO D E R N MATE RIALS HA NDL I NG
dustry participants contacted by ABI Research feel cur-
rent conditions are challenging but may only represent a
small bump in overall RFID adoption. However, there is
a sense that vendor performance and end-user activity
during Q1 and Q2 2009 will be critical bellwethers for
overall near-term RFID market growth within traditional
and modernizing applications.”
INDUSTRIAL EQUIPMENT
Sasaki named president of
Toyota Industrial Equipment
TOYOTA HAS ANNOUNCED the appointment of Kazue
Sasaki to president of Toyota Industrial Equipment Mfg.
(TIEM, www.toyotaforklift.
com), the U.S. manufacturing
plant for Toyota lift trucks. In
addition, he is now president of
Toyota Industries North Amer-
ica, a holding company, and a
director of the Toyota Material
Handling U.S.A. (TMHU) board
of directors.
As president, Sasaki is re-
sponsible for all aspects of the
Columbus, Ind., plant, which
manufactures the majority of
Toyota lift trucks sold in the
United States.
Outgoing president Susumu
Kazue Sasaki
(Sonny) Toyoda will remain active in Toyota Industries
Corporation (TICO). Toyoda, who served a five-year
tenure at TIEM, was influential in leading the plant to
achieve numerous environmental and manufacturing ac-
colades including a zero-landfill status and the production
of the 300,000th lift truck.
Sasaki brings more than 20 years of management
and engineering experience to the plant, most recently
serving as a senior managing officer of TICO. Prior to
this role, Sasaki was a managing officer, director and led
TICO’s Engine Division, and was responsible for col-
laborations with Toyota Motor Corp. to produce environ-
mentally friendly diesel engine concepts, along with new
business development activities.
“Sasaki’s passion for quality and excellence showcases
his leadership abilities,” said Shankar Basu, chairman and
chief executive of TMHU and a director of Toyota Indus-
trial Equipment Mfg. “It is an honor to welcome him as a
member of the team.”
Sasaki has a bachelor’s degree in mechanical engineer-
ing from Kyoto University.
mmh.com
 ECONOMY
ISM says manufacturing
up slowly, positive PMI
imminent
MANUFACTURING, ON A WHOLE, is still going up, al-
beit “slow and deliberate,” according to the Institute for
Supply Management.
The latest report from the Institute for Supply Man-
agement (ISM) shows that the economy has been in
decline for 18 months straight.
And, according to Norbert Ore, chair of ISM’s manu-
facturing business survey committee, that’s a good
thing.
ISM collects a number of statistics each month, and
the figure Ore watches the most is the Purchasing Man-
agers Index (PMI), which represents the manufacturing
industry as a whole. On a scale of 1 to 100, anything
below 50 is considered “in decline.” Whenever any kind
of recession has taken place in the past, Ore said the
PMI slips below 50 to reflect tough economic times.
Typically, however, the PMI doesn’t stay below 50 for
more than 17 to 18 months before climbing above 50
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into “growth” territory. “It always seems to be some-
where in that range,” he said.
In July, according to the ISM’s latest report, the PMI
was below 50 for the 18th straight month. In other words,
it’s due to climb above 50, and the past seven months
have shown it trending in that direction. In January 2009,
the PMI rose from December’s figure of 32.9 to 35.6%,
and hasn’t looked back since. In July, it rose 4.1 percent-
age points to 48.9%.
“We’re on the right path,” Ore said.
At this rate, Ore said the PMI is poised to cross the
50% threshold either this month or in September. This
will mark the first step into positive territory since the
recession began.
Of course, the real telling sign the economy is on the
rebound will be if the PMI remains above 50, and doesn’t
lose any of the ground it’s gained. Ore said it is likely to
continue climbing, as other figures are also showing posi-
tive change. Over the past four months, he said, custom-
er inventories have declined sharply, dropping one point
to 42.5% in July. Again, that’s a good thing, Ore said,
because these inventories, typically referring to consumer
products and finished goods, are bound to lead to new
orders for those goods, which boosts manufacturing.
• Spooled Products
• Parts Storage
 Ore admitted that the inventory figure is a little lower
than normal—ISM prefers to see it hovering around the
45% mark, but in the current economy, lower than normal
is better than higher.
Other figures are on the rise, too. The New Orders
Index came in at 55.3% in July, which was 6.1 points
higher than June. The index has grown in two of the last
three months, according to the ISM report. In addition,
nine out of 14 reporting industries reported growth in
new orders in July. Prices, Ore noted, are also up, indi-
cating manufacturers are feeling braver. It all adds up to
a positive outlook for the coming months.
“All of them begin to feed on each other,” he said.
It will still take time, of course, before the effects of
the anticipated good news will filter down into the main-
stream economy. Employment, Ore noted, will always lag
behind everything else, whether the economy is in growth
or decline. ISM’s July report showed the Employment
Index went up 4.9 percentage points to 45.6%, but it still
remained in decline, for the 12th month straight, and Ore
said it will probably be among the last indices to recover.
But manufacturing, on a whole, is still going up, albeit
“slow and deliberate,” Ore said.

Non-manufacturing index slips in July

The latest non-manufacturing sector report from ISM
showed a slip in recent growth, but current predictions of
economic recovery are still on track, according to An-
thony Nieves, chair of ISM’s non-manufacturing business
survey committee.
While the manufacturing sector has shown steady
growth for the past seven months, non-manufacturing has
fluctuated back and forth. Still, Nieves said he expected
to see more stable, level figures for July.
Instead, he said, the non-manufacturing index (NMI)
slipped 0.6 points to 46.4%, and other figures also
dropped unexpectedly.
“This was a surprising report,” Nieves said.
Summer, as a rule, is a typically slow time for non-
manufacturing industries, but only seven out of 17
industries reported any growth in July. The business
index, poised to cross the 50% mark in June at 49.8%,
fell to 46.1%. New Orders fell from 48.6 to 48.1% in
July, too.
Some industrial declines, such as travel and tourism,
reflected the current consumer attitude still fueled by
the recession, Nieves said. “People are just keeping their
purse-strings tight,” he added.
But not everything is doom and gloom. Nieves said
the real estate, rental and leasing industry has reported
growth. So too has health care, of which Nieves said “it
has probably been the one sector that’s been most reces-
sion resistant.”
LIFT TRUCKS
Crown to kick off LPG
LATER THIS YEAR, Crown Equipment Corporation
(www.crown.com) will be introducing a new line of
propane-powered lift trucks that will be the first-ever
Crown-designed and built of its kind. Crown intends
to keep details of the new product secret until its
official launch. But you can see a sneak preview of
the lift truck hoisting Minnesota Vikings running back
Adrian Peterson on the cover of the July issue of
ESPN The Magazine.
Nieves also looked to the manufacturing sector as
a positive sign. However fickle non-manufacturing has
proven to be, the steady growth in manufacturing is a
good sign that non-manufacturing will soon follow suit.
Typically, Nieves said the manufacturing sector shows the
first signs of decline when the country falls into a reces-
sion, and eventually shows the first signs that the country
is climbing out of one.
Right now, ISM is predicting both sectors will show
positive growth before the end of the year, and possibly
before the end of the fall. Nieves said the non-manufac-
turing sector is still on track with that prediction, despite
the backslide recorded in July.

12 A U G U S T 2 0 0 9 / MO D E R N MATE RIALS HA NDL I NG mmh.com

INDUSTRY NEWS
ID Label acquires
Universal Label
Technologies
A LETTER OF INTENT to purchase
has been signed by ID Label (www.
idlabelinc.com) for the assets of Uni-
versal Label Technologies (ULT, www.
ultbarcodes.com). ID Label manufac-
tures a range of preprinted bar code
labels and signs.
“ULT has been a leader in the
variable image, bar code label man-
ufacturing for warehouse applica-
tions since it was founded in 2001.
We look forward to building on the
foundation that ULT has provided its
clients for the past eight years, and
extending the product offering to
help them grow their business under
the ID Label banner,” said Neil
Johnston, president of ID Label.
“The acquisition gives ID Label
an expanded customer base of cli-
ents that have an ongoing need for
LPN labels, rack bin location labels,
retro reflective signs and installa-
tion services,” said William Powers,
ID Label vice president of sales and
marketing. “The manufacturing and
service offerings of ID Label will
significantly benefit ULT clients.”
“The equipment we have ac-
quired with this transaction expands
our capabilities to service additional
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niche applications in the bar code
and variable image marketplace,”
added Jeff Chandler, chief operat-
ing officer of ID Label. “Our exper-
tise in variable image label manu-
facturing provides us with a strong
understanding of how we can utilize
this equipment to the benefit of
existing and future clients.”
ID Label will continue to maintain
operations at the existing ULT facil-
ity and employ a number of staff at
its Attleboro Falls, Mass., location. A
portion of the manufacturing opera-
tion will be transferred to the new
21,000-square-foot facility ID Label
will operate in Lake Villa, Ill. This
facility is scheduled to be complete
in September 2009.

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 13

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FROM OUR BLOGS
How big is your (carbon) footprint?
Wal-Mart wants to know
The following is an excerpt from executive
editor Bob Trebilcock’s blog. Read the full
version here: www.mmh.com/footprint
How green is your supply chain? It’s not an idle question if
you’re one of the 100,000 suppliers to Wal-Mart. The retail
giant announced a plan to have its suppliers calculate the full
environmental costs of making products. Wal-Mart will translate
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 LIFT TRUCK TIPS
TOM ANDEL,
COLUMNIST

It’s a buyer’s market

In this down economy, lift truck
providers are more willing than ever to
make a deal with a qualified buyer.

A
S I WRITE this column, the lift truck leasing market
is like the restaurant once described by the great
Yogi Berra: “Nobody goes there anymore. It’s too
crowded.”
Well, the market IS crowded—with inventory. The drop
in sales volume across ALL markets has led to more lift
trucks being parked—in end user facilities as well as at
dealer sites.
Dave Anderson, remarketing manager for Toyota
Financial Services (www.toyotafinancial.com), the captive
financing arm of Toyota Material Handling, says these Typical lift truck leases are based on fair market value. The
conditions have prompted his company to do things it customer has the option of returning the equipment at the end of
has never done before—like sell to wholesalers. the lease or buying it at its fair market value.
“When we go to remarket lift trucks in an auction
atmosphere we don’t get a lot of activity today,” Ander- the equipment’s destiny at the end of the transaction.
son told me. “Eighteen months ago on our typical bid list However…
we’d have multiple units and most sold. Now we go out “Our leases are unique because we guarantee what
with hundreds with marginal sales results. They’re good the residual will be,” Anderson says. “If our residual is
prices, residual or lower, but the dealers are so loaded $5,000 we guarantee that residual will be $5,000 regard-
up on inventory and so cash starved they can’t buy at this less of the fluctuation in the value of that truck.”
point. That’s why we’ve had to get more creative in selling Bob Sattler, vice president of Hyster Capital (www.
our merchandise.” hyster.com), the captive finance company for Hyster Co.,
says he’s seeing more refinancing
As inventory ages, it devalues. Providers are more activity than new-truck transactions.
“You want to keep that asset
willing to customize the terms to get customers to deployed as long as possible,” Sattler
sign on the dotted line. says, “so the lenders are willing to ex-
tend leases and even discount leases
Lift truck providers face the same reality customers at the end of the term to make sure those assets stay out
do: As inventory ages, it devalues. They HAVE to turn it there in the field as long as possible. At the back end of
over. That’s why leasing terms are more creative than ever. leases it’s a buyer’s market.”
Providers are more willing to customize the terms to get Let’s put it this way: it’s a qualified buyer’s market. The
customers to sign on the dotted line. size of a customer is no longer the determining factor in
how far a lift truck provider will go to please him or her.
It’s how credit-worthy they are. Yes, you’re in a better
Fair market value
position to get deals these days, but the price may be a
Typical lift truck leases are based on fair market value. The deeper dive into your financials.
customer has the option of returning the equipment at
the end of the lease or buying it at its fair market value.
Anderson explains that most of Toyota’s leases are
without option because the dealers want to control Contact Tom Andel at tandel4315@aol.com.

mmh.com MOD ER N MATER IALS HAND LING / A U G U S T 2009 17

Affordable
By Bob Trebilcock, Executive Editor

With the economy in

the tank and end users
reluctant to spend, the
materials handling and
supply chain software
industries are coming
up with new ways to put
innovation and automation
within everyone’s reach.
 modern BIG PICTURE

innovation
A ll talk and no action!
That best sums up the market for materials handling and sup-
ply chain software solutions in 2009. The industry’s customers
– that’s you, our readers – know they need to invest in innovation
if they’re going to continue to beat the competition and meet the expecta-
tions of customers. But given the only thing that most users know about the
near future is that they don’t know anything, few companies are willing to
pull the trigger on a new system, solution or piece of equipment.
“We’re getting more requests for quotations than get approved are those that deliver a return on invest-
last year,” says Scot Aitcheson, director of fleet man- ment this year.
agement for Yale Materials Handling Corp. (800- But let’s not forget that innovation is one of the
233-9253, northamerica.yale.com) “But even if we hallmarks of this industry. The best and the brightest
can prove the return on investment, there is a hesi- are turning on their creative juices to put affordable
tancy to take on any level of risk.” innovation in reach of even the tightest fisted CFO.
It’s not just lift truck customers who are holding In the following pages, we look at how 15 companies
tight to their purse strings. Talk to systems suppli- representing automated systems, software and the
ers or the technology industry and the story is the lift truck industry are approaching the market with
same: Lots of talk, no action. The projects that do their customers’ leaner wallets in mind.

Automated systems:
Taking the cost out of
automation
Time for a tune-up
“If you already have a system in place, you’ve probably
invested a lot in that solution,” says Ken Ruehrdanz,
business development manager for Dematic (877-
725-7500, www.dematic.us). “But when is the last
time you had someone come in and tune up the sys-
tem?” A Dematic team will perform an audit of your
existing system, often at a very low cost, and then
recommend affordable steps to get more productiv-
ity from the investment you’ve already made. Those
recommendations may be as simple as modernizing
the system with new controls and software; it may
involve energy-saving measures that put the system
in sleep mode when there’s no activity; or the addi-
tion of variable frequency drives that allow you to
speed up or slow down the system according to the
level of activity. If the audit calls for a more expan-
sive solution, Dematic can create a modular design
to the system. That may involve installing one-
aisle of an automated storage and retrieval system
to begin automating a slow-moving pick area, with
more aisles added later.

mmh.com M ODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 19

modern BIG PICTURE
Automate the conventional warehouse
An automated storage and retrieval system (AS/RS)
can deliver significant space and labor savings in a
full pallet warehouse. But it also represents a major
upfront investment. HK Systems (262-860-7000,
www.hksystems.com) is offering a more affordable
approach for the warehouse with 30-foot racking
and lift trucks for putaway and picking. “Instead of
putting in an AS/RS or man-up lift trucks, we have
a line of automatic guided vehicles (AGVs) with 30-
foot plus reach capacity,” says senior vice president
Mike Kotecki. “This allows you to introduce auto-
mation in a facility with conventional push back or
selective rack retrieval.” HK refers to this approach
as “automate the conventional.” The best candidate
is the warehouse using three or more lift trucks
across more than one shift a day. The savings comes
from the reduction in labor if you don’t need a lift
truck operator on more than one shift. And, instead
of purchasing AGVs that may cost $80,000 each, an
end user can pay a monthly lease and maintenance
fee. A typical lease term would be eight years, says
Kotecki.
Get a tax credit
Everyone likes to save money on taxes, says Ed
Romaine, marketing manager for Remstar (800-
639-5805, www.remstar.com). That includes users
of materials handling systems and equipment. The
American Recovery and Reinvestment Act extends to
purchases made in 2009 a 50% bonus depreciation
allowance for new machine tools and other equip-
20 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG
ment ordered and placed in service during 2009, as
well as an increased Section 179 expensing for small
business equipment purchases. In the right circum-
stances, these credits can result in tax deduction
worth up to $119,000 on a 2009 equipment pur-
chase of $400,000. You may not need to be a rocket
scientist to figure out whether these tax credits
apply to your organization—and they won’t apply to
everyone—but you may need to be an accountant.
Remstar will work with your CFO or tax advisers to
provide the information they need to see if your pur-
chase would qualify for these savings.
Retrofit, rebuild and save
Doing more with less while getting the most out
of what you already have is an absolute necessity
when budgets are tight and cash is scarce. Rather
than replace a conveyor and sortation system or pal-
letizer, a user may be able to extend the life of the
system and increase throughput with a rebuild or
retrofit of an existing system, says Dennis Gates,
vice president of customer support for Intelligrated
(513-701-7300, www.intelligrated.com). “Over the
years, we’ve developed expertise in rebuilding sort-
ers, combiners and high-end conveyor systems that
we provide as well as systems implemented by other
equipment providers,” says Gates. Intelligrated’s
offerings can be as simple as a thorough audit to
report on the current state of the system, with infor-
mation on the components that are wearing out, to
a partial or complete rebuild of the system. Retrofits
and rebuilds can be done at night or over a weekend
when a system is out of service so that it’s up and
running for the next shift.
Get smart
Anyone who attended ProMat last January couldn’t
help but notice the proliferation of automatic guided
carts (AGCs). In the right application, these carts
are an affordable alternative to AGVs and lift trucks,
with paybacks as short as three months. What’s the
right application? One with multiple shifts, loads
under 6,000 pounds, and simpler processes. A cart,
for instance, isn’t sophisticated enough to load or
unload trailers. In the last year, Jervis B. Webb (248-
553-1000, www.jervisbwebb.com) has introduced
fast-charging battery technology that allows a user
to purchase fewer carts since they don’t have to be
taken out of service for a battery change, and has
increased the number of models to handle heavier
loads and more processes.
mmh.com

Supply chain
software:
Automating
across the
supply chain
WMS for the rest of us
“The traditional software model is fundamentally
broken,” says Jim Burleigh, chief executive officer
of SmartTurn (888-667-4758, www.smartturn.com).
“There are so many costs associated with imple-
menting, operating and maintaining the system.”
SmartTurn provides a warehouse management sys-
tem (WMS) in a software-as-a-service model (SaaS).
The company’s solution is loaded on its own servers
and is accessed over the Internet by users who pay
a monthly subscription fee as low as $500 a month
for basic inventory management, $800 a month for
what SmartTurn defines as a full-blown WMS. The
company, in turn, is responsible for maintenance
and upgrades. SmartTurn isn’t right for everyone.
For instance, the company doesn’t offer labor man-
agement, companies with sophisticated picking
strategies will find it lacking, and it isn’t designed
to work with automated materials handling systems.
“Our sweet spot is warehouses of less than 150,000
square feet, which is the majority of the facilities
out there,” says Burleigh. “For the most part, they
don’t need that functionality.”
WMS as a 3PL
In warehousing, third party logistics providers,
or 3PLs, make their money by turning the capital
investment of creating and operating a transporta-
tion department or distribution center into a man-
aged service provided by the 3PL. RedPrairie (877-
733-7724, www.redprairie.com) is doing something
similar for the WMS and transportation manage-
ment system (TMS) user with the kind of sophisti-
cated warehousing and transportation requirements
that can’t be handled by an entry-level WMS, says
RedPrairie’s Chris Hickey, executive vice presi-
dent of sales. RedPrairie is taking several different
mmh.com
modern BIG PICTURE
approaches to this market. One is to take a compo-
nent of the company’s package, like labor manage-
ment, that can be delivered as a standalone applica-
tion. A second is for RedPrairie to implement and
manage the system on a dedicated server at its host-
ing center, much like a 3PL managing order fulfill-
ment services for a company. The customer gets the
benefit and security of having its own system, while
paying a subscription fee.
Slotting software as a service
Slotting software helps customers save money by
relocating products in the DC to reduce the travel
time for picking. Rather than purchase the soft-
ware, SI Systems (800-523-9464, www.siingenuity.
com) offers it as a service that users can access over
the Internet. A customer provides SI Systems with
a layout of its facility, the type of conventional and
automated picking systems it uses, the location of
products within that layout and the orders that are
processed at any given period of time. With that
information, the system creates a baseline, deter-
mining for instance how much travel it takes to
fill those orders and replenish locations. Once the
baseline is created, the system can create alternative
plans for slotting and picking, and compare them to
see if the savings associated with the new strategy
is enough to off-set the cost associated with reslot-
ting. “Typically, we can show a customer a payback
of less than a year, including the cost of using the
service,” says chief operating officer William Casey.
MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 21
modern BIG PICTURE
Flexible supply chain
collaboration
Supply chain collaboration platforms allow compa-
nies pursuing an outsourced manufacturing or dis-
tribution strategy to collaborate with all of its trading
partners. While other collaboration providers offer
their software over the Internet as a service, Amitive
(650-212-1415, www.amitive.com) is taking it one
step further, by offering a solution that automatically
scales to a company’s computing needs, says chief
executive officer Amar Singh. “Traditionally, a com-
pany plans its hardware structure for peak capacity,”
says Singh. “But that means that most of your serv-
ers are idle 80% of the time.” Instead, Amitive has
developed a load-balancing technology that moni-
tors the load on a customer’s database servers. If the
system senses that a customer is using a lot of com-
puting resources and maxing out a server, it will add
another one to pick up the slack. If the usage goes
down, it will remove a server. “If you have a business
that runs on 10 servers all day long, you won’t see
much of a savings,” says Singh. “But if you have a
business with seasonal demand and peaks, we think
you’ll see significant savings because you’re only
paying for capacity as you use it.”
Get your programming
software for (almost) free
Programmable logic controllers (PLCs) are the
brains behind an automated materials handling sys-
tem. These processors receive orders from a ware-
house management or warehouse control system and
make sure that the wheels, gears and motors on the
equipment do what they’re supposed to do, when
they’re supposed to do it. Rockwell Automation
is taking steps to reduce the cost of the software
used to program its MicroLogix line of micro- and
mid-sized PLCs, says Rick Sykora, product market-
ing manager for component software for Rockwell
Automation (414-382-2000, www.ra.rockwell.com).
“We’ve designed the program to ease the cost of
acquisition for these processors, which are used
in applications like a conveyor system or a pallet-
izer,” Sykora says. “If you want to experiment with
a processor and see what it’s like, you can down-
load the software for free. If you decide you need
a larger PLC, we’ve created two packages at $129
and $500.” A similar package used to list for $1,200,
Sykora says.
22 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG
Lift trucks:
Affordable
materials
handling
Lowering the cost of ownership for
pre-owned lift trucks
Crown (419-629-2311, www.crown.com) is work-
ing closely with dealers to help customers under-
stand that Crown pre-owned lift trucks offer more
than simply a new set of tires and paint job. Crown’s
Encore series assures each pre-owned lift truck
undergoes an extensive rebuild process including
original parts. A comprehensive warranty includes 90
days on all wearable items and 180 days on all major
components. On average, 85% of the components
on Crown lift trucks are engineered and manufac-
tured by Crown. This enables the company to take
a number of steps during the manufacturing process
to ensure the trucks can provide the same level of
performance in a second life. The Crown Encore
series features exclusive use of Crown Integrity Parts,
which have been designed selected, built and tested
to meet specific performance goals. Crown says its
Integrity Parts typically last two to three times longer
than aftermarket alternatives.
Right-sizing your fleet
One of the first places to save money on lift trucks is
to analyze your fleet to ensure that you have the right
number of trucks in the first place. “The majority of
customers I talk to with fleets of 100 or more trucks
have about 15% more equipment than they need,”
says Scot Aitcheson, director of fleet management
for Yale Materials Handling Corp. (800-233-9253,
northamerica.yale.com). “As a fleet management
service, we will spend time with those customers to
analyze how they’re using their equipment by model
and location to make sure they have the right num-
ber of trucks at each location.” The result: Instead of
replacing 20 trucks, a customer may find that they
only need to replace five and that they can reassign
the other 15 from one location to another. That not
only frees up money in the budget for other purposes,
the customer also saves on labor, parts and mainte-
mmh.com

nance that would have been spent on those trucks.
“The larger the fleet, the more opportunity there is to
save through right-sizing,” says Aitcheson.
Optimizing lift truck maintenance
The greatest opportunity to save money on the total
cost of operating a lift truck is after the sale. “When
you drill down, you’ll find that the purchase price is
about 11% of the cost of a truck over five years,” says
Joe LaFergola, marketing manager of business and
information solutions for the Raymond Corporation
(607-656-2311, www.raymondcorp.com). “The other
89% is the labor, maintenance and energy costs asso-
ciated with operating the truck.” Raymond has devel-
oped its iWarehouse program (it stands for intelligent
warehouse) to help customers reduce total operating
costs. This is a wireless device that plugs into the
central computer onboard a lift truck to collect key
metrics about how many hours a truck is being used
and how it’s being used. One module can look at
the repairs being made to a truck and at root causes
to see if there are any systemic issues driving up
maintenance costs. For instance, if one warehouse
has higher costs compared to other warehouses,
Raymond can drill down into the models and serial
numbers driving up costs. It could mean a truck that
needs to be replaced or overhauled, or it could mean
the driver on that truck needs training. By capturing
the actual number of hours the truck is in operation,
a company can perform maintenance based on an
interval of hours rather than a calendar date, which
could result in significant savings over the year.
Smarter financing
Companies focused on conserving cash and credit
lines can finance their Toyota lift trucks (800-226-
0009, www.toyotaforklift.com) through the com-
pany’s captive finance company, Toyota Financial
Services (TFS). “By funding through TFS (800-
541-2315, www.toyotafinancial.com), a company
will have the ability to leverage its relationship with
Toyota Material Handling and its dealer network
to remarket their used lift truck equipment,” says
Richard Pipenhagen, national sales and market-
ing manager for TFS. “This option may have special
financing linked to the equipment, providing the
customer a more competitive pricing structure.” For
small businesses, TFS offers subvented rates with
Toyota Material Handling, U.S.A. (TMHU), and a
myriad rates, based on the customer’s financing goals
and the amount of the loan. In addition to leasing,
mmh.com
modern BIG PICTURE
Toyota’s long-term rental business has grown. This
is especially important for businesses that need a
forklift to move their product and can carry the cost
of a monthly rental, but can’t get capital expenses
approved right now for a purchase or lease.
Flexible fleet management
Maintenance agreements typically involve a fixed pay-
ment over the life of a contract, typically five years.
But in a difficult economic climate, it’s more difficult
for companies to predict their lift truck usage. For
that reason, Hyster (888-358-7827, www.hyster.com)
is offering maintenance by the hour. “Instead of a
fixed monthly payment, it’s variable and based on the
actual run time hours on a truck,” says John Russian,
manager of Hyster fleet marketing. “This allows our
customers to align their maintenance costs with their
revenue stream.” In some scenarios, Russian says, a
customer can save 7% to 15% over the cost of a fixed
maintenance agreement. Who is the ideal candidate?
“It’s the customer that has peaks and valleys in their
usage.” To make its full fleet management services
more attractive, Hyster is providing performance
guarantees with its fleet management agreements.
“With some customers, we’re delaying and/or reduc-
ing the monthly admininstrative fees to remove the
upfront burden and demonstrate program savings,
and with others we’re proposing a monthly adminis-
trative fee for a fleet management program, with a
guarantee to reduce their spending by a certain per-
centage over the year,” says Pat DeSutter, director of
Hyster Fleet Services. “At the end of the year, if we
haven’t delivered the on savings commitment, we’ll
refund the administrative fees they paid us.”
MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 23
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Lift Truck Usage Study Webcast
LIVE Thursday, August 27 at 2:00 PM EST • REGISTER: www.mmh.com/lifttruck09 modern SPECIAL REPORT

TOP 20
LIFT TRUCK
SUPPLIERS
For the first three
fiscal quarters of 2008,
worldwide lift truck
sales rolled right along.
In the fourth quarter, it
was a different story.
By Lorie King Rogers, Associate Editor

L ift trucks are such an important component

in the materials handling industry. Without
them, we’d be at a standstill. Literally.
During the first three fiscal quarters of 2008,
worldwide lift truck sales saw modest, reasonable
growth, but the fourth quarter saw sales come to a
screeching halt.
“Sales didn’t just drift down a hill; it was much
more abrupt. Sales ran down the hill and stopped,”
says Stan Simpson, current president of the
Industrial Truck Association (ITA, 202-296-9880,
www.indtrk.org).
Blame it on the economic downturn. As was the
case with nearly every industry around the globe,
the lift truck industry saw purchases put on hold
and end users hunker down.
According to the ITA’s statistics, worldwide
industrial truck orders were down 8% for 2008.
The Americas suffered the largest decline, down
13%. Europe and Oceania were both down 9%, and
Asia was down 5%. The only global region that did
not report a decline was Africa, which reported no
change at all. (For worldwide lift truck orders, see the
table on page 27.)
Don’t despair: The lift truck industry has taken a
hit before. In 2001, the global market declined nearly
12% in terms of total lift trucks sold. The industry
bounced back in 2003 with a 13% increase over 2002
and reported strong growth up until 2008.
Although sales were down in 2008, ITA is pre-
dicting a come back in 2009. According to Simpson,
there are several positive indicators that show we’re
turning a corner. “I’m not saying we’ll be back to 2007
numbers soon, but I believe we’ve hit bottom and are
on the way back up again.”
How has this environment affected the ranking
of Modern’s Top 20 worldwide lift truck suppliers?
Not much. Last year’s leaders remained at the top.
Toyota held on to the No. 1 position with $6.51
billion in sales in 2008. While it was a drop from

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 25

Lift Truck Usage Study Webcast
LIVE Thursday, August 27 at 2:00 PM EST • REGISTER: www.mmh.com/lifttruck09

World’s top 20 industrial lift truck suppliers

2007
Rank Company rank 2008 revenue* North American brands World headquarters
1 Toyota Industries Corp. 1 $6.51 billion Toyota, Raymond Aichi, Japan
2 Kion Group 2 $6.00 billion Linde Wiesbaden, Germany
3 Jungheinrich Lift Truck Corp. 3 $2.98 billion Jungheinrich Hamburg, Germany
4 NACCO Industries 4 $2.82 billion Hyster, Yale Cleveland, Ohio
5 Crown Equipment Corp. 6 $1.82 billion Crown, Hamech New Bremen, Ohio
6 Mitsubishi Caterpillar Forklift 5 $1.67 billion Mitsubishi, CAT Sagamihara, Japan
7 Nissan Forklift Corp. 8 $1.17 billion Nissan, Barrett, Atlet Tokyo, Japan
8 Komatsu Utility Co. 9 $1.15 billion Komatsu, Tusk Tokyo, Japan
9 Anhui Forklift Group 10 $857 million Heli Hefei, Anhui, China
10 TCM Corp. 7 $733 million TCM Tokyo, Japan
11 Nippon Yusoki Co. 11 $723 million Not available in North America Kyoto, Japan
12 Clark Material Handling 13 $495 million Clark Seoul, South Korea
13 Manitou 14 $485 million Manitou Ancenis, France
14 Zhejiang Hangcha Engineering 15 $414 million** HC Hangzhou, China
Machinery Co.
15 Doosan Infracore 12 $363 million Doosan Infracore Seoul, South Korea
16 Hyundai Heavy Industries 16 $224 million Hyundai Ulsan, South Korea
17 Rocla 17 $182 million Not available in North America Järvenpää, Finland
18 Tailift 18 $165 million** Tailift, World-Lift Taichung, Taiwan
19 Combilift 19 $130 million Combilift Monaghan, Ireland
20 Hubtex 20 $98 million Hubtex Fulda, Germany
*Fiscal year 2008 worldwide sales revenue
**Figure based on industry estimate
Figures are based on foreign exchange rates as of 12/31/08.

2007’s $7.80 billion, it was enough to
give the company a strong grasp on the
top slot.
The Kion Group (North American
brand: Linde) held on firmly to the No.
2 position with $6 billion in revenue.
That number was down from last year’s
$6.3 billion, but more than double
the revenue from No. 3 Jungheinrich,
which reported $2.98 billion.
NACCO Industries (North American
brands: Hyster, Yale) climbed from $2.7
billion to $2.8 billion, but not enough to
move them out of the No. 4 position.
Rounding out the top five is Crown,
with $1.82 billion. Its 2008 revenue
was enough to bring the company up
from last year’s No. 6 ranking. As a
result, Mitsubishi Caterpillar moved to
the No. 6 slot with $1.67 billion.
The combined industrial lift truck
revenue from all 20 companies on
Modern’s ranking list reached $28.99
billion. That’s a 8.46% decline over the
fiscal year 2007 total of $31.67 billion.
MAKING THE LIST
To be eligible for Modern’s annual top
20 ranking, companies must manufac-
ture and sell lift trucks in at least one of
the Industrial Truck Association’s seven
truck classes: electric motor rider; elec-
tric motor narrow aisle; electric motor
hand trucks; internal combustion
engine, cushion tire; internal combus-
tion engine, pneumatic tire; electric
and internal combustion engine tow
tractors; rough terrain for lift trucks.
Rankings are based on worldwide
revenue from powered industrial trucks
during each company’s most recent fis-
cal year.
MERGERS AND ACQUISITIONS
In the merger and acquisition area,
there weren’t too many major breaking
news flashes. However, at the end of
2008 Mitsubishi Caterpillar Forklift
Europe (MCFE) took a controlling
interest in the Finnish lift truck pro-
vider Rocla. As a result, Rocla has
become a subsidiary of MCFE. Since
the deal was completed toward the
end of the year, the companies are
reporting separately this year, but are
expected to report a combined 2009
figure next year.
MOVING FORWARD
Simpson predicts that the big players
will get bigger and the small ones will
find it difficult to compete. “It’s my
belief that the large, full-service compa-
nies will continue to grow. It’s the Wal-

26 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com

 modern SPECIAL REPORT

Mart scenario, and it’s alive and around very soon. When you talk
well in the lift truck industry.”
Worldwide lift truck orders 2008 to people in the business, the
Is that a good thing? Region Number of orders Percent change major players and ITA members,
“If you’re a small entrepre- Europe 367,000 -9% they’re not just sitting around
neur in a small town, you might Americas 200,000 -13 % saying ‘woe is me.’ Everyone fully
not think so,” says Simpson. Asia 267,000 -5 % accepts the fact that volumes
“But for the end users it’s more are lower and we have to make
Africa 16,000 no change
and more important as it relates tough decisions. Leaders all look
to the life cycle of a lift truck.” Oceania
22,000 -9%
at this as an opportunity to look
He explains that people who Total 872,000 -8% at what they do and do it better.
are making capital investments Source: World Industrial Truck Statistics We think the industry will come
in lift trucks or any mission- back as a better one than before
critical equipment are looking this happened.”
to buy from a stable company that can INDUSTRY GETS A LIFT
offer full service during the life of a lift During the first five months of 2009, ON THE HORIZON
truck. They can’t afford to buy some- industry numbers have not deteriorat- Last year Modern recommended
thing that isn’t fully supported and doc- ed; things haven’t gotten worse. That keeping an eye on emerging Chinese
umented when something goes wrong. means we’re closer to the end than the and Indian lift truck suppliers. It’s
“Buying a major brand may cost a lit- beginning of the economic downturn. still good advice. The worldwide
tle more up front, but if there’s a prob- “No doubt that 2009 started out economic situation affected every-
lem, you can make a call and it’s fixed. poorly,” says Simpson, “but I predict one. So once we’re back on track, we
The after sales support and service of our next report will show an increase. repeat, Modern will be keeping tabs
a product is more important than ever,” And many of us in the industry on emerging Chinese and Indian lift
says Simpson. believe we’ll be seeing a positive turn- truck suppliers.

Aigner Index, Inc.

218 MacArthur Avenue
New Windsor, New York 12553
Tel: 1.800.242.3919
E-mail:holdex@frontiernet.net
Fax: 845.562.2638
www.aignerindex.com

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 27

Free Online Lift Truck
Price Quotes
LIFT TRUCK RESEARCH MADE EASY
Forkliftcompare.com is the industry’s
premier online lift truck database
representing over 3,500 lift truck
models from over 27 leading Original
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The ‘search & compare’ database
contains more than 175,000 lift
truck specifications and provides
users with: side-by-side model
comparisons, customized product
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 modern EQUIPMENT REPORT
PA C K A G I N G

At the
end of the line
Here are three examples of best practices in end-of-the-line packaging
that might make a difference in your facility.

Page 30
Rental giant Blockbuster installed
an integrated packaging line that
delivers the perfect order, but also
reduces product damage and rejec-
tion rates.

Page 32
Since the installation of a new auto-
mated palletizing line, Ventura Foods
has seen a reduction in labor and
eliminated workers compensation
claims due to heavy lifting.

Page 33
With a new stretch film system, auto
accessory manufacturer Ranch Hand
Truck Accessories increases produc-
tivity and yields savings in labor and
materials costs.

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 29

modern EQUIPMENT REPORT
PA C K A G I N G

Print/apply labeling
enhances efficiency
Blockbuster installed an integrated packaging line that delivers
perfect order fulfillment and also reduces product damage and
rejection rates.
By Sara Pearson Specter, Editor at Large

E very day, thousands of movie and game

titles are packaged and labeled for deliv-
ery at Blockbuster’s distribution center in
McKinney, Texas. To ensure order fulfillment accu-
racy and just-in-time capability, the company rede-
signed a portion of its existing packaging equipment
to save time and money.
The entire automated rental packaging pro-
cess is managed by a suite of software applications
(Videojet Technologies, 800-843-3610, www.vid-
eojet.com) developed for Blockbuster, explains Bill
Wissing, Blockbuster’s vice president of distribution
and logistics.
The software provides a data control and report-
ing system that handles real-time data flow between
Blockbuster’s warehouse management system (WMS)
and DVD disc automation machines on five identical
production lines. The lines are managed by a sepa-
rate application that provides the real-time interface
to and from the DVD automation equipment and the
print and apply labelers.
Each line starts with a machine that loads DVDs
into plastic cases and inserts paper sleeves with the
title information into the outer jacket of the case. Then
the DVD cases are closed and conveyed to three label-
ing systems that apply the new release rental stickers
to the bottom right front corner of each case.
Next, print and apply label machines print vari-
able data onto a label and apply the label to the oppo-
site front left corner of the case. Each label contains
unique information such as copy number, store name
and address, the title of the movie/game, the original
release date and rating, and a unique copy bar code.
Labels are printed and applied at a rate of up to 110
pieces per minute through two labelers used back to
back, each labeling every other case. “Each label is
unique—with the production system sending the cor-
rect number of serialized copies to each store—so con-
trol of the product and data is critical,” says Wissing.
Print and apply label machines print variable data
onto a label and apply it to the DVD cases.
Near the end of the packaging operation, another
print and apply labeler prints a label with a unique bar
code. This ID label is applied to the side of a plastic
tote in which the cases will be loaded. As the DVD
copies are placed into the tote, the system synchro-
nizes the unique tote ID bar code with the copies
within. A task report containing the specific informa-
tion for up to 30 copies per tote is automatically sent
to the packaging software application and the WMS.
“If an error occurs, the system enables workers
to locate a tote and its expected contents within a
database by simply scanning either the tote bar code
or one of the copy bar codes,” Wissing says. “Tote or
copy labels that are missing or damaged in the con-
veying process can also be reprinted.”
To prevent re-labeling, Blockbuster’s system requires
100% fulfillment of each and every task. Should even
a single copy of a DVD be rejected prior to placement
into a tote, the entire tote is sent to a rework station.
The resulting integrated packaging line delivers not
only perfect order fulfillment and improves process
efficiencies, it has also yielded a reduction in product
damage and has cut rejection rates from 0.5% to less
than 0.01%, says Wissing.

30 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com

 CHE
HEPP–
Pres
eseerving th
thee env
nviironme
m nt
and
an d your busin
ness.
One
e pal
alllet at a tim
tiime.

Thanks to its customers, CHEP saved 2.5 billion pounds of solid waste from ending up in landfills
in one year alone*. To see just how, and to calculate how CHEP can help grow your company's profits
and environmental profile, visit CHEP.com /onepallet.
© 2008. CHEPUSA. All Rights Reserved.
* Study by Franklin Associates. Based on 2007 total CHEP network volume versus one-way whitewood.
 PA C K A G I N G

Automated palletizing
improves bottom line
Since the installation of a new automated palletizing line,
Ventura Foods has seen a reduction in labor and eliminated back
injury insurance claims.
By Sara Pearson Specter, Editor at Large

T o better compete in their mar-

ket, Ventura Foods consolidat-
ed three west coast manufac-
turing facilities into one strategically
located plant in Ontario, Calif. The
new, 650,000-square-foot facility pro-
vided a more cost-effective location for
shipping the company’s shortenings,
oils, margarine, salad dressings, may-
onnaise, sauces and syrups through-
out the United States.
Prior to making the move, Ralph
Freda, regional engineering manager
for Ventura Foods, spent time evaluat-
ing which pieces of existing equipment
would make the move, and which
items would be purchased new—while
staying within budget constraints.
“One of the main goals was to keep the layout sim- All of the palletizers within the facility needed to
ple, with as much floor space available to allow for easy be able to run many different package types.
access to the machines and conveyors,” says Freda.
All of the palletizers (Columbia Machine, 360- The new case conveyors run from the cool envi-
694-1501, www.columbiamachine.com) within the ronment production area that is separated by a
facility needed to be able to run many different pack- firewall to the palletizing area on each of the eight
age types. To meet this requirement, the company packaging lines. In addition, each of the floor level
selected and installed four floor-level case palletizers and robotic palletizing systems includes a pallet
running on dedicated packaging lines, two robotic dispenser, tie sheet dispenser and gravity discharge
palletizers, and case conveyors. conveyor.
“The control system is equipped with software that Since the installation of the new line, Ventura
permits easy machine changeover of the 13 different Foods has seen a reduction in labor for the lines that
case patterns, with each line running two to eight dif- were not previously served by automated palletizing
ferent patterns or package sizes,” Freda says. equipment. Not only has the company saved because
The two robotic palletizers serve different func- of a reduction in labor, but it has also eliminated
tions in the new setup. The first robotic palletizer worker compensation claims due to heavy lifting,
stacks cases coming from two lines and places prod- says Freda.
uct onto two pallet stacking stations. The second Further, the plant has experienced improved pal-
robotic palletizer is equipped with an end effector letizing efficiencies due to the automated equipment
that stacks cases and pails from two independent providing stable and consistent loads for shipping,
packaging lines. and easier machine changeovers for new products.

32 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com

mmh.com

PA C K A G I N G
Stretch packaging
protects truck parts
With a new stretch film system, an auto accessory manufacturer
increases productivity and yields savings in labor and materials costs.
By Sara Pearson Specter, Editor at Large
A s one of the largest manufacturers of accesso-
ries for heavy-duty truck and sport utility vehi-
cles in the United States, Texas-based Ranch
Hand Truck Accessories added more automation to
meet growing demand. The company had been produc-
ing approximately 160 grille guards and front bumper
replacements a day, sold primarily by new car dealer-
ships and aftermarket truck accessory retailers. When
output grew to more than 200 pieces per day, the com-
pany installed a robotic powder coating line.
“When we put the new powder line in, we start-
ed seeing a bottleneck in packaging,” recalls Greg
Chumchal, general manager. “At the time, we were
hand packaging everything. Even with six people
working the packaging line, we couldn’t keep up.”
Both the grille guards and bumpers are large and
oblong—measuring roughly 7 x 3 x 3 feet—and weigh
an average of 130 and 270 pounds respectively.
“These things are tough to wrap because of their
shape and sharp corners,” Chumchal explains.
Packaging consisted of foam-in-place pads, over-
wrapped with kraft sheets. The kraft wrapping was held
in place with bailing twine, tied by hand. Packaging
workers often wrestled with the paper and twine while
handling product coming off the paint line. Further,
the kraft material was not holding the padding in place
consistently, compromising product protection during
shipment and outdoor storage at customer locations.
While the foam-in-place pads reduced shipping
returns by 80%, it wasn’t good enough. “We can’t have
the products getting banged around and scratched up
in transit,” says Chumchal. “The distributors just send
mmh.com
33
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AUG U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG
modern EQUIPMENT REPORT
A stretch wrapping system replaced kraft paper and
twine with scored corrugated sheets.
them back.” With a MSRP on grille guards of about
$575 and front bumper replacements about $1,300, the
margin could be eroded quickly with product returns.
The company turned to a faster, more efficient and
protective packaging method, implementing a stretch
wrapping system (Lantech, 800-866-0322, www.
lantech.com) and replacing the kraft paper and twine
with scored corrugated sheets to hold the pads in place.
Mounted on a 40-, 60-, 75- or 90-inch ring through
which product passes, the machine’s film delivery sys-
tem wraps both product and conveyor simultaneously
while the product is moving or stationary. After wrap-
ping is complete, a cut-and-clamp device cuts the end
of the film, which recovers against the product as it exits
the machine. Wrapping parameters, including con-
veyor speed and number of wraps, are adjustable with a
touchscreen programmable logic controller (PLC).
“The versatility of the system lets us handle almost
any shape or size we put through it, so we now wrap
95% of our products with it,” Chumchal says.
In addition to increasing productivity, the stretch
film system has yielded substantial savings in labor and
materials. Annually, labor costs were reduced by 17%
(about $19,000) and packaging materials costs were
reduced by 12% (about $25,000). Chumchal estimates
that labor and material savings alone will pay for the
machine in less than three years. Further, bonus savings
come from a 50% reduction in product returns due to
shipping damage.
MODERN
MODERN MAT
MATERIA
ERIALLSS HA
HANDL ING // A
NDLING 00 99 33
A UU GG UU SS TT 22 00 mmh.com
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 Getting more from less with
inventory optimization
Early adopters of inventory optimization management systems are improving
service levels while reducing the amount of inventory in the supply chain.
By Bob Trebilcock, Executive Editor

O UTSIDE THE FOUR WALLS OF THE

DISTRIBUTION CENTER, inventory
is the hot potato of the supply chain. No
one wants to hold it for longer than they have to, and
no one wants to own more of it than is absolutely
necessary.
At the same time, many of today’s manufacturing
and distribution strategies mean that someone some-
where is going to end up holding that potato whether
they like or not. Take lean manufacturing. Sure, the
manufacturer pursuing a just-in-time strategy has
turned all the storage space in the plant into more
productive work cells. But that same manufacturer
still counts on its suppliers to hold and deliver the
raw materials, parts and components needed to run
the lines. Big box retailers that have eliminated back
rooms still expect suppliers to make smaller and more
frequent deliveries to keep the shelves stocked. The
inventory hasn’t gone away; it is just being held by
someone else.

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Inventory optimization
Supplier
Software Software
Multi-echelon inventory optimization
Supplier
The challenge for the supplier left
tossing the hot potato from hand to
hand is: Figure out just how much
stock to keep and where to warehouse
it to minimize a company’s investment
in inventory, and still meet the service
levels demanded by customers. No one
benefits from stock outs, manufactur-
ing lines that grind to a halt, or an air-
plane sitting on the ground because a
critical part isn’t on the shelf.
The old fashioned way to avoid those
outcomes was to load up on safety
stock at each storage location in the
network. The smarter way is to use a set
of software tools known as multi-ech-
elon inventory optimization to set and
monitor inventory levels.
These applications take a holistic
approach to inventory management.
Instead of setting inventory levels one
mmh.com
modern INFORMATION MANAGEMENT
Factory Warehouse
Software
Factory Warehouse
Software
location, or echelon, at a time, a multi-
echelon optimization solution uses
sophisticated algorithms that can assess
demand and inventory positions across
a network, and then set inventory lev-
els at multiple locations, or echelons,
simultaneously. Better visibility allows a
company to improve service levels while
reducing the total amount of inventory
in the supply chain. While this is still
an emerging supply chain software
area, these applications are delivering
measurable value to early adopters,
including paybacks of less than a year
in some instances.
“Any company that’s going to invest
in technology in 2009 wants that
investment to be cash flow positive
in 2009,” says Simon Ellis, practice
director for supply chain strategies at
Manufacturing Insights (508-988-
MODERN MAT ERIA L S HA NDL ING / A
Store
Software
Store
7900, www.manufacturing-insights.
com) and the co-author of “The Modern
Supply Chain: Inventory Optimization
Competitive Assessment,” adding that
inventory optimization fits that bill.
“These tools are driving some pretty
significant savings, and in the current
environment, more companies should
be taking a closer look,” Ellis says.
New approach
The catalyst for the adoption of these
new systems is simple: With traditional
inventory planning systems, users often
ended up with too much inventory at
one location, and too little at another,
says Ellis. A company with multiple
warehouses, for instance, might place
a replenishment order when it runs
low on a specific item at one facil-
ity, even though another facility might
U G U S T 2009 35
modern INFORMATION MANAGEMENT

have more than it needs of that same tions like: What’s the impact of holding the day, the replenishment system can
item. “When you factor in the little bit inventory in a semi-finished state versus compare the inventory position in a
of excess inventory that ends up on the a completely finished state?” says Lizza. facility against the policy created by the
shelf because of a reorder or as safety “I can model the impact of pre-building optimization system.”
stock, it really adds up,” says Fred Lizza, some of inventory I might need to meet When it’s time to reorder, the sys-
CEO of Optiant (781-238-8855, www. seasonal demand.” tem can look first to see if stock can
optiant.com). “That’s the inventory we And, like an event management and be transferred between facilities. If
want to eliminate.” visibility tool, an optimization applica- so, an order can be sent to the WMS
Multi-echelon inventory optimiza- tion can be used to highlight excep- and transportation management system
tion, on the other hand, looks at the tions to inventory levels or demand. “If (TMS) in the facility with extra stock,
supply chain in three dimensions—it’s everything is flowing according to the just like any other order. It’s all auto-
a little like playing three-dimensional plan, and this week’s safety stock target mated, so it can happen without some-
chess compared to the traditional board for an SKU is the same as last week’s one intervening.
game. Instead of optimizing each loca- target, nothing hits the radar screen,”
tion separately, these applications can says Lizza. “But if there is a spike in Managing spare parts
see the whole supply chain at once. demand or something changes in pro- One of the first adopters of multi-ech-
“Instead of looking at your inventory duction and a part is being consumed elon inventory optimization was the
in a silo, a multi-echelon system can faster than was planned, the system repair parts industry. It faces a unique
look at all of the inventory drivers for will alert an inventory planner that the set of issues: A machine or piece of
the network: from the forecast, the stock level needs to change.” equipment may have to be supported
amount of safety stock you might need At that point, the system can run a for decades, the demand for specific
to meet a customer’s service level, your new plan and set new stock levels for parts is unpredictable, and contracts
inventory positions, and everything you a part. may require delivery of some parts to
have on hand,” says Rod Daugherty, Most importantly, because the sys- a maintenance organization in as lit-
senior director of product strategy for tem is tracking inventory across the tle as two hours. “Typically, what you
Manhattan Associates (770-955-7070, supply chain, it can work with supply find is that 80% of your parts will be
www.manh.com). “It sees those up and chain execution systems, like ware- used less than one time a year,” says
down the network.” house and transportation management Tim Andreae, senior vice president of
What’s more, like a supply chain systems, to transfer stock between marketing for MCA Solutions (215-
network design tool, an optimization facilities rather than order additional 717-2180, www.mcasolutions.com).
tool allows a user to perform what-if stock. “As you’re picking in a distribu- “Deciding whether you even need to
scenarios that incorporate variability tion center, a warehouse management stock one or two of those parts to meet
and uncertainty into the planning pro- system (WMS) is keeping track of the a service level is an important deci-
cess to come up with an optimal plan. inventory on hand,” says Manhattan sion—both from a service and a finan-
“The system allows me to answer ques- Associates’ Daugherty. “At the end of cial point of view.”
A multi-echelon optimization tool
allows maintenance organizations
to balance financial considerations
Inventory optimization in action and service-level requirements, says
COMPANIES ARE USING inventory optimization to solve a variety of inventory Andreae, by factoring in the variability
problems. Some examples include:
• A CPG company in the cosmetics business uses inventory optimization to and unpredictability associated with
determine the right mix to stock of the season’s hottest shades while still service parts into the inventory plan-
meeting demand for the basics. ning equation. They do this by look-
• A manufacturer with off-shore manufacturing operations uses the tool to set ing at everything from the design of
inventory levels that will meet service levels without holding so much inven- the network to the parts required for
tory that the carrying costs off-set the savings from moving manufacturing
to a low-cost country. scheduled maintenance programs to
• A candy manufacturer with its own brand and private label customers uses a multi-year history of unscheduled
the tool to decide how much product can be manufactured in advance, how maintenance for every part. In addition,
much of that can be wrapped in advance, and how much can be kept in a the system can be tied into a product
semi-finished state to meet demand. lifecycle management system (PLM) to
• A maker of electronic games uses the tool to determine how to phase out
the inventory of a discontinued model while ramping up the production and factor in any changes to the product or
introduction of a new model. to be notified when a new part can be
used to replace a prior part. “The sys-

36 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com


tem takes all of that information in to
set stock levels for every part, and to
determine where in the supply chain to
locate those parts,” says Andreae.
The payoff: By bringing both intel-
ligence and discipline to the inventory
planning process, service parts cus-
tomers “have been able to reduce their
inventory by anywhere from 15% to
40% while still providing the same level
of service,” says Andreae. What’s more,
by automating the process, supply chain
planners are much more productive.
The next echelon
Now that some early adopters have
mastered the basics of multi-echelon
optimization, they are taking the sys-
tems to a new level of planning, accord-
ing to Adeel Najmi, vice president of
product strategy and planning for i2
Technologies (800-800-3288, www.
i2.com).
If you really need to
cut costs...
...leave no pallet unturned.
With the right pallet program, you can
drive out waste and reduce unnecessary
costs in places you never thought to
look. IFCO’s programs eliminate:
third-party transportation fees
lost pallet fees, and
pallet storage costs.
modern INFORMATION MANAGEMENT
Having optimized inventory levels,
says Najmi, companies are now using
the tools to answer questions like how
to optimize the total net landed cost
associated with a product. “Given the
volatility in fuel costs and the globaliza-
tion of the supply chain, the problems
today are much more complex,” he
says. “The visionaries are determining
whether they are better off using fast
modes of transportation, like air cargo,
to get frequent deliveries and carry less
inventory, or using cheaper but slower
transportation methods and carrying
more inventory.”
Increasingly, inventory optimiza-
tion is working hand in hand with sup-
ply chain network design applications,
and doing so on a more regular basis.
“It used to be that a company would do
a one-time design to optimize where
the factories and DCs were going to be
located and what strategies they were
IFCO SYSTEMS uses a large, nationwide
supply of our environmentally friendly
reusable stringer pallets. We offer JIT
pallet supply, online reporting, and
reverse logistics. No out-of-network fees.
No lost pallet, tracking, or administration
fees. No hassles. No kidding.
going to use to meet demand,” Najmi
says. “In the last two years, we have
seen companies review their network
designs and their optimization plans on
a fairly regular basis.”
Najmi calls this optimized perfor-
mance. One company he works with
has a network of small DCs close to its
markets that are used to distribute pro-
motional items. “They’re changing how
they utilize those facilities and what
stock flows through them every week,”
Najmi says. “They’re using these tools
to get much more agile about their sup-
ply chain.”
While most companies are still trying
to go from a single- to multi-echelon view
of their inventory, performance optimi-
zation is where the industry is heading.
“Today, it’s the visionaries that are going
to the next level, but other companies
will have to get there sooner or later in
order to compete,” Najmi says.
www.ifco-us.com | 877.430.IFCO
modern PRODUCTIVITY SOLUTION

SAFE TRAVELS; LOWER COSTS

Aviation equipment supplier uses
a versatile packaging system to cut
expenses and protect products during
shipping.

By Lorie King Rogers, Associate Editor

A IRPLANES GET PEOPLE where they need

to go. For more than 30 years, Tronair prod-
ucts have been getting airplanes where they need
to go. Tronair is a supplier of aviation ground sup-
port equipment that offers more than 1,000 prod-
ucts and equipment replacement parts, including
wheel chocks, hydraulic service units and more.
Tronair’s warehouse supervisor, Don Baldwin,
was looking for an inflatable packaging system to
provide cushioning for a variety of products.
Each year, the company ships hundreds of
parts from their 90,000-square-foot warehouse
in Holland, Ohio, to airports worldwide. Since
the parts range from 12-foot tow bars to 2-inch
replacement parts, Tronair needed a versatile
packaging system that could protect all shapes and
sizes in transit. It landed on an inflatable pack-
aging solution (Sealed Air, 708-482-3389, www.
sealedair.com) that provides the flexibility, reliabil-
ity and protection Tronair demands.
“When we ship tow bars we need a lot of air
cushions at once, so the speed with which the
system creates cushions was also attractive,” said cushions and foam cushions. To produce the cus-
Baldwin. tomized foam cushions, the system dispenses a
The inflatable packaging system creates cus- mixture of two components that are mixed and
tom-sized, air-filled cushions that provide cush- result in a high-quality polyurethane packaging
ioned protection, blocking and bracing for prod- foam.
ucts throughout the shipping cycle. It allows Other key factors in the decision to change
operators to select the length and height of the over to the new packaging system were its smaller
cushioning material at the touch of a button. And footprint, faster speed and resistance to summer
for heavier items, the new system uses a heavier humidity. Humidity in the warehouse had been
film that makes for stronger seals that keep cush- adversely affecting the old packaging system, caus-
ions inflated through the rigors of travel. ing frequent downtime for machine repair. Since
To ship oddly shaped products, the company incorporating the new system, the company has
requires a combination of packaging techniques. seen less downtime in the warehouse and cut the
It uses a hybrid solution that includes inflatable average shipping time by 45 minutes per shift.

38 A U G U S T 2 0 0 9 / M ODE RN M AT E RI ALS H AN D LI NG mmh.com

 Welcome to
Leading The Turnaround,
a special sponsored
section of Modern Materials
Handling.

Keeping with the theme of the cover

story, companies from throughout
the materials handling industry, listed
here alphabetically, tell you about how
they’re helping their customers beat a
bad economy.

This section is designed to provide you

with information and insight into
companies that can help you meet your
materials handling challenges.

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 39

 Aigner Label holders pay you in time saved—over and over
Simple and quick designation or location
changes. Insertable plastic label holders make it easy to
change a label or location. Simply re-mark the insert and
slide it into the holder.
Better Organization of Storage. Every efficient stor-
age facility must know where everything is: All of the time.
Protecting Bar Codes is a Must. Bar codes must be
protected from dirt, moisture and chemicals to prevent an
inaccurate scan. This would obviously create an inventory
discrepancy or possibly even a lost customer.
Little or No Cost for Printing Labels.
Label Holders for Every Storage Solution. Years
of consumer demand for new product development has
resulted in a wide selection of label holders with a choice
of backings. Permanent self adhesive for permanent ap-
holder system rarely exceeds 4% of the total warehouse
cost, yet no other single function contributes more sav-
ings. Whatever the initial investment is for a Label Holder
System, payback in materials, labor and overall efficiency
will be justified by:
• Ease of normal label changes.
• Cost savings of 50% in label materials; eliminating
expensive, hard to remove, adhesive labels in favor of
plain paper labels.
• 65% minimum savings in labor to apply and remove
self adhesive labels: No more clean up time.
• ROI in 12 months or less
Aigner Index, Inc.

plications or removable self adhesive, magnetic and fabric New Windsor, NY

800-242-3919
hook and loop fasteners.
holdex@frontiernet.net
Cost Justification is Easy. The total cost for a label www.aignerindex.com

Make the most of what

you already have...with Dematic
Your material handling system has given you years of Many of these solutions offer a fast payback of often
service, but now it may be that it simply can’t perform less than a year.
at the required level or your business model may have
changed. During these tough economic times, investing Learn more at: www.dematic.com/assets
in an entirely new system may not be possible, so to help,
Dematic has developed several programs that can help you
sweat your current assets to maximize the throughput and
performance of your material handling system.
Dematic’s comprehensive range of services and support
solutions can bring new life to your automated material
handling system by: Dematic Corp.

• Improving system uptime 507 Plymouth Ave. NE

Grand Rapids, MI 49505
• Maximizing system throughput
Phone: 877-725-7500
• Reducing maintenance costs Fax: 616-913-7701
• Lowering energy costs www.dematic.com

• Improving ergonomics and safety

40 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com

 Diamond Phoenix: Automated
systems integrator and industry experts
Diamond Phoenix is a leader in the design, manufac-
ture, integration and installation of innovative automated
storage and retrieval systems to fulfill the needs of orga-
nizations looking to streamline and improve their material
handling operations. We are a full service system provider
and integrator, offering analysis, system design and inte-
gration, advanced warehouse software and a full suite of
material handling equipment.
Throughout our history, one key aspect of our philoso-
phy has remained unchanged: the only way to design the
ideal solution for your facility is to work with you side by
side, from analysis to system design to implementation and
beyond. We are committed to helping you understand the
latest material handling trends and developments and to
providing you with solutions that are flexible enough to
meet your changing needs.
Our commitment is demonstrated by our people. Cover-
ing every management discipline, our team of core manag-
ers brings the strength of over 100 years of combined
experience to the table. We have assembled an unmatched
group of highly experienced professional engineers, project
managers, manufacturing personnel, software experts,
customer service and support staff, all dedicated to creat-
ing the right system for your operation. Contact Diamond
Phoenix today to schedule a tour of our campus and
manufacturing facility.
Diamond Phoenix
90 Alfred Plourde Parkway
Lewiston, Maine 04241
888-233-6796
www.diamondphoenix.com

Working smarter with less…everyday

Using less space, labor and inventory levels while 2009 Programs designed to help organizations:
improving customer satisfaction and reducing costs… • Free Equipment For Trial (EFT) program.
sounds like reality in today’s economy? It’s actually been • Federal Tax Incentives
the Remstar simple automated solutions value proposi-
• Free Internal Rate of Return/Return On Investment
tion for over a decade for manufacturing, distribution and
Analysis
warehousing applications.
• Free Space & Productivity Analysis
• Consolidate multiple facilities, work stations and
cells… saving up to 85% of floor space.
• Eliminating up to 2/3 of the labor required for picking
and storage activities.
• Using saved floor space in value added activities
• Extending order cut off times.
The line of Remstar simple automated solutions include: Remstar
VLMs, horizontal and vertical carousels, pick-to-light sys- 800-639-5805

tems and inventory management software can be delivered www.Remstar.com

and installed in as little as 15 days.

mmh.com MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 41

 Ridg-U-Rak commitment to quality
continues through challenging economy
At Ridg-U-Rak, we’re continuing to do the things that
have made us a leader in the industry for over 65 years.
We persistently make significant reinvestments in our plant
operations and commit resources to research and develop-
ment. This commitment maximizes our efficiencies and
minimizes downtime. This allows us to maintain our high
standard of quality and provide flexible storage rack solu-
tions at the lowest possible cost to our customers.
Our production processes are state-of-the-art and
second to none in the industry. The experienced sales and
engineering staff work directly with our customers to en-
sure that the most efficient and cost-effective storage rack
solutions are provided. From standard selective systems
to highly specialized storage systems, Ridg-U-Rak has and
outstanding service at the lowest possible cost for our
customers.
This isn’t our response to difficult economic times: It’s
our way of doing business. At Ridg-U-Rak, we believe this
philosophy has provided great stability for our company
and has served us, and more importantly, our customers
very well. We will continue to operate in this way, through
good times and bad.
Ridg-U-Rak
North East, PA
866-479-7225

will continue to provide the best engineered systems and www.ridgurak.com

Span Tech conveyor rebuild program

Span Tech announces a new reduced pricing offer on
conveyor rebuilds for popular MultiSpan® and Super-
Tight™ conveyor chain. In this challenging economic
climate, contact your Span Tech distributor and have your
existing conveyors rebuilt at a 50 percent savings vs.
replacement cost. This includes replacing all outside links,
any other significantly worn links, rebuilding your drives
and idlers with new sprockets and bearings, and thorough
cleaning of all components. You will receive a clean, rebuilt
system that will operate for many years to come, at half
the cost of full replacement. Conveyor commissioning
activates the standard Span Tech warranty. Call your local
Span Tech distributor today, or call Span Tech direct for Span Tech

more information. 1115 Cleveland Avenue

Glasgow, KY 42141 USA
Phone: 270-651-9166
Fax: 270-651-7533
www.spantechllc.com
general_info@spantechllc.com

42 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com

 Toyota: Helping you lead the turnaround
Keeping Costs Down Beyond the Purchase
It’s essential to demonstrate savings throughout lift truck
ownership, particularly when you consider the majority
of the costs associated with a lift truck occur after the
purchase. Obviously, buying a quality product is the first
step in lowering your overall cost of ownership. Beyond
that, Toyota Industrial Equipment dealers help you manage
work orders, track repairs and alert you when lift trucks are
due for general maintenance. With comprehensive support
from factory-trained service technicians, strong service
coverage and parts inventory levels, Toyota dealers help
increase your uptime and drive down unnecessary costs.
Contact your Toyota Industrial Equipment Dealer
today to start saving today!
mmh.com
Charged with Productivity
Toyota dealers now offer PosiCharge™ fast charge systems.
With PosiCharge™, electric lift truck customers can reduce
the number of batteries required, and eliminate battery
changing and battery changing rooms. PosiCharge™ fast
charge systems help to maximize vehicle run time through-
out the day. The PosiCharge™ system enables drivers to
charge during regularly scheduled breaks and shift changes,
allowing vehicles to operate all day, every day,* on only one
battery that remains in-vehicle.
*Weekly equalization and cell balancing ensures maximum battery health.
Toyota Material Handling
1 Park Plaza, Ste. 1000
Irvine, CA 92614
1-800-226-0009
toyotaforklift.com
MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 43
Palletizers
Flexible configurations for
limited palletizing spaces
The small footprint SP4000 pallet-
izer offers high-level, high-capacity
pattern configuration to meet cur-
rent palletizing rates and adapt to
future needs. Flexible, the unit can
stack a variety of product types,
including shrink film only, display
packs, small cases, bags, bales, trays,
bundles, totes and plastic containers.
Configurable in a range of layout
options, the system is ideal for new
and retrofit applications, particularly
where layout constraints are present.
Columbia Machine, 800-628-4065,
www.palletizing.com.
Optimize equipment
performance
To restore original operating perfor-
mance levels and identify potential
upgrades, a professionally conduct-
ed audit program is offered for the
supplier’s line of palletizers. Audits
are performed by certified engineers
trained in palletizer maintenance and
supplier specifications. Included is a
review of operating and maintenance
practices and infeed-to-discharge
inspection of all components, includ-
ing wear points, chains, rollers and
44 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG
other moving parts. Upon comple-
tion of the inspection, a formal
report documents the audit findings
and outlines a recommended course
of action. Intelligrated (formerly
FKI Logistex), 866-936-7300, www.
intelligrated.com.
Low-level infeed palletizer
easily reconfigured
The fully automatic Currie LLP-21
low-level infeed palletizer enables
all operations to be seen from
the floor level, and runs up to 21
cases per minute. The modular
system is offered in six configura-
tions to accommodate different
plant layouts. To withstand high
fatigue situations—including con-
stant feeding, palletizing and dis-
charging of product—the system’s
modular structure is constructed
without welding. For fast installa-
tion, the unit is delivered in two
sections and is field reconfigurable.
Relocating a palletizer to another
plant or another area of a plant
requires only repositioning the
infeed direction with minor adjust-
ments and re-bolting. Brenton
Engineering, 888-852-6993, www.
brentonengineering.com.
Palletizer builds load,
wraps concurrently
The automated TT series palletizers
perform concurrent stretch wrapping
while the load is being built, at rates
of up to 50 per minute. Concurrent
wrapping yields higher throughput
rates and improved load stability.
Offered in low- and high-product
infeed models, the palletizers handle
up to 50 cases per minute, measur-
ing from 6 to 24 inches in either
dimension. The system’s controls
include 50 different patterns stored
and quick changeovers between pat-
terns. Layers weighing 300 pounds
are standard, with an option to
increase capacity up to 1,000 pounds
per layer. TopTier, 503-353-7388,
www.toptier.com.
Palletizer eliminates pallets
For lower freight costs when trans-
porting goods internationally, the
Paletpac palletless stretch packag-
ing system ensures that every cubic
meter of container loading space
is used by eliminating the pallet.
Suitable for bagged bulk contents,
mmh.com
the technol- Rotate entire palletloads crushed, the unit’s clamping mecha-
ogy main- The PalletPal Inverter offers a fast, nism features user-adjustable pres-
tains space safe, easy way to rotate fully loaded sure control. Loads rotate 180˚ on
for forklift pallets. Ideal for replacing broken an anti-friction turret bearing and
handling pallets, the unit can also be used for can be stopped at any point dur-
while add- switching to or from in-house/ship- ing rotation. Southworth Products,
ing an addi- ping pallets, transferring loads to 207-878-0700, www.southworth-
tional layer slip sheets, and replacing damaged products.com.
of products goods at the bottom of a load with-
out the need for manual restack-
Small footprint, high-speed
to the load.
Items are ing. The inverter handles loads robotic palletizer
measuring 48 x 48 x 60 inches and Reaching speeds up to 20 cycles
stacked
capacities up to 4,400 pounds. To per minute, the EC-171 high-speed
up on an
ensure that lighter loads will not be robotic palletizer incorporates a
area the same size as a pallet with
Fuji robot and a collision detection
the top layer not filled out across its
system. The robot works in tight
entire width. Once complete, the
spaces and includes a 10.5-inch
stack is transported to the supplier’s
color touchscreen for human inter-
high-capacity stretch hood pack-
face control—no laptop required.
aging machine, which pulls a film
The system also features onboard
stretch hood over it. The wrapped
diagnostics, advanced programming
stack is then inverted with a turner
platform and up to 400 different
and stretch wrapped a second time
pre-programmed recipes. American-
for shipment. The BEUMER Group,
Newlong, 317-787-9421, www.
+ 49 (0) 711 9454161 0, www.
american-newlong.com.
beumer.com.

System Integration
Industry Experts
Service You Can Rely On
Integrated distribution and manufacturing systems by Diamond Contact us today to schedule a tour of our
Phoenix are backed by knowledge that comes from helping
campus and manufacturing facility.
organizations increase their customer satisfaction and profitability.
Partnering with our customers for mutual success is our way of doing 1.888.233.6796 www.diamondphoenix.com
business. Numbers that read 750% increase in throughput, two-
thirds reduction in labor costs, up to 100% order accuracy, and return
on investment in as little as nine months speak for themselves.
You’ll know us by our references!

♦ Intelligent and dynamic designs

♦ State-of-the-art software
♦ Leading-edge order
picking solutions
♦ Expert conveyor
systems integration
♦ Knowledge
♦ Experience
♦ Results
 Want to save
time and money on
INDUSTRIAL EQUIPMENT?
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Where Smart Businesses Buy and Sell

A division of
Palletizers
Stretch wrap system locks
load to pallet
The easily adjusted Pallet-Grip load
locking system for the supplier’s
straddle stretch wrappers secures the
load to the pallet with a cable of film
rolled into the bottom, wrapped and
placed below the deck of the pal-
let. The system captures any style of
pallet, from 4 to 6 inches high, while
also completely wrapping to the top
of the load. A rolled cable of film
is placed approximately 1.5 inches
below the pallet deck, while the
remainder of the film web captures
the load above the deck. By placing
the cable above the pallet fork-truck
entry points, containment force is not
compromised by the forks. Lantech,
800-866-0322, www.lantech.com.
Bag palletizer
The Master 3500 high level bag pal-
letizer offers consistency, ease of
operation and precision placement.
Features include servo controlled
layer pusher and pallet lift motors,
advanced machine diagnostics with
HMI, full motor jog capabilities and
an integrated Allen Bradley control
architecture. Using bar code scan-
ning, the palletizer can achieve
mmh.com
Going
Up?
recipe driven product changeover
in less than 20 seconds. Thiele
Technologies, 612-782-1200, www.
thieletech.com.
Automatic product
positioning
To automatically form the optimal
pallet configuration for each pal-
letized product, the high-speed
overhead orienter accepts items for
palletizing and turns them 90˚, 180˚
or 270˚. It can also be used to turn
bags to form pallets with “butts-out”
orientation, and to rotate cases and
trays for specific panel orientation.
Servo-powered for smooth handling
and reliability, the unit quickly and
gently grips and rotates products to
the proper position during accumu-
lation. Fully automatic operation is
pre-programmed with new orienta-
tions programmable by control panel
or remotely by modem uplink. A
Running out
touchscreen display enables one-
touch operation. A-B-C Packaging
Machine, 800-237-5975, www.
abcpackaging.com. of space?
Custom vertical lifts:
Unit palletizes, wraps • Efficiently access additional
space in your existing facility
• Engineered to order
• Guaranteed code approval
• Commitment to safety
• Nationwide factory trained
dealer network
The SPLX-MKII stack and wrap unit
combines a palletizer and a WCA- • Over 14,000 installations
100 stretch wrapper manufactured
Call 414-352-9000 for a custom
by Wulftec. The integrated wrap-
application assessment or visit:
per is located directly outside the
elevator to prevent impeding the
rated cases per minute while creat-
www.Pflow.com
ing a small footprint. Depending on
the pallet pattern and case sizes,
the machine reaches rates up to 60
cycles per minute. Options include
a touchscreen for adding patterns.
vonGAL, 334-261-2821, www.
vongal.com. Superior design. Better service.
MODERN MAT ERIA L S HA NDL ING / A U G U S T 2009 47
Palletizers

Robotic palletizers handle Robotic palletizer stores, stages products

30 bags/cases per minute Ideal for high-SKU, low-rate palletizing, the Robotic
UL-listed Palletizing Matrix unit allows the gantry’s work envelope
Kawasaki to become a temporary storage and retrieval system for
robotic products that will eventually be palletized for warehous-
palletizers ing. With a single build position for unit load automation,
reach rates the system offers throughputs of more than 10 SKUs at
up to 30 rates of fewer than 10 cycles per minute. The unit’s com-
bags/cases pact footprint and automated functionality eliminates
per minute. extensive unit load handling equipment and personnel.
Running Complete unit loads are centrally discharged to an in-line
at 1,800 stretch wrapper. RMT Robotics, 905-643-9700, www.
cycles per rmtrobotics.com.
hour, the robot uses a simple direct coupled gearbox
with AC servo motors and absolute encoders on all Small footprint system uses gantry robot
axes. With a verified 96,000 hours mean time between Using a lighter
failures and 10,000-hour average maintenance interval, gantry robot
the robot is almost maintenance free. Layer and pallet to reduce
pattern programming is accomplished through block costs, a case
step teaching with a hand-held pendant. A 6.4-inch LCD palletizing/
color display with menu driven interface is included, order-build-
as are Ethernet and RS232 ports. Collision detection is ing system
standard. Conveying Industries, 303-373-2035, www. also includes
conveyingindustries.com. a patented
drive system.
Fewer mov-
ing parts are incorporated to minimize maintenance and

.OBONDFAILURES cut downtime. Once cases arrive on a single infeed con-

GUARANTEED

veyor, they are organized in pallet quantities on the floor
under the robot. The cases are then palletized by layer
at a common pallet build location for a reduction in the
overall footprint of the system. Capable of processing a
).42/$5#).'4(%.%84'%.%2!4)/. high number of SKUs per gantry, the system is ideal for
/&,/!$7(%%,3&2/-350%2)/2 plants producing a high number of SKUs. C&D Skilled
!.).$53429&)234
4 Robotics, 409-840-5252, www.cdrobot.com, www.
&INALLYALOADWHEELENGINEEREDTOWITHSTANDTHE skilledrobots.com.
DEMANDINGNEEDSOFWAREHOUSEAPPLICATIONS AND
DEM
ACOMPA
MPANYWITHTHEGUTSTOSTANDBEHINDTHEIRPRODUCT Palletize heavy bags, case products
7ITH3UPERIORS
ORS h.O"OND&AILUREvGUARANTEETHE For case packing and palletizing of bag and case prod-
NEW#USHOTHANEš 8, TAKESTHEWORRYOUTOFHANDLING ucts weighing up to 50 pounds, the HL high-level robotic
HEAVYLOADSHIGHSPEEDSA
DSANDLONGRUNS palletizer is offered. Ideal for palletizing heavier products
that require taller unit loads—including pet food prod-
ucts, flour and grains, wood pellets and heavy industrial
cases—it palletizes at rates up to 45 products per min-
ute. Using an integrated Fanuc M710 or M20 robotic
arm, the system builds loads in a variety of patterns,
including interlocked, brick, spiral or column. The system
can be configured as a dual station one-in-two-out sys-
tem or as a single station one-in-one-out palletizer that
#!,, 53&/2!$%!,%2 .%!29/5 can be fully automated with pallet transport conveyor,
pallet dispensing and slip sheet dispensing.
   sWWWSUPERIORTIRECOM Schneider Packaging Equipment, 315-676-3035,
0ENNSYLVANIA!VENUE7EST7ARREN0ENNSYLVANIA
www.schneiderequip.com.
48 A U G U S T 2 0 0 9 / MO D E RN MATE RIALS HA NDL I NG mmh.com
 advertiser index

classified/
Page # Phone Page # Phone recruitment
Aigner Index Inc. 27 800-242-3919 Ridg-U-Rak, Inc. 15 866-479-7225
www.ridgurak.com
Big Ass Fans Company C-3 877-BIG-FANS
www.bigassfans.com SpanTech 13 270-651-9166 Label Holders
www.spantechllc.com
Buckhorn, Inc. 14 800-543-4454
www.buckhorninc.com Stamps.com 4
www.stamps.com/mmh
BuyerZone 46 866-623-5565
www.buyerzoneindustrial.com Superior Tire & 48 800-289-1456
Rubber Corp.
CHEP USA 31
www.superiortire.com
www.chep.com
Toyota Industrial EquipmentC-2 800-226-0009
Dematic 8 800-530-9153
www.toyotaforklift.com
www.dematic.us
University of San Francisco Online 6
Diamond Phoenix 45 888-233-6796
877-843-5541www.usanfranonline.com/mmh
www.diamondphoenix.com
Vidir Machine Inc. 11 800-210-0141
HCI Steel Building Systems 24 800-255-6768
www.vidir.com
www.hcisteel.com

IFCO Systems 37 877-430-4326

www.ifco-us.com
Ergonomic Holster Systems
Pflow Industries, Inc. 47 414-352-9000
www.pflow.com

Remstar C-4 800-639-5805

Bumpy Rides?
www.remstar.com
Secure Your
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MODERN 60 SECONDS WITH…

Sarah Carlson
Jervis B. Webb
TITLE: Marketing director/vice chair,
Automatic Guided Vehicle Systems
industry group
COMPANY: Jervis B. Webb (248-
553-1204, www.jervisbwebb.com);
Material Handling Industry of America
LOCATION: Farmington Hills, Mich.;
Charlotte, N.C.
EXPERIENCE: Four years in the
materials handling industry, follow-
ing marketing and promotional ser-
vices for the automotive industry
PRIMARY FOCUS: Manager of Web,
trade show and marketing efforts.
Recently became vice chair of the
AGVS industry group at MHIA, pro-
moting AGV technology to the public.

Modern: We don’t find a lot of

women in materials handling. What
attracted you to the industry?
Carlson: Being a woman in an industry
with a lot of men was not a big deal.
When I was in college, I spent the
summers working in the iron mines
where I grew up, and I was often one
of the few women on a 60-man crew.
I was used to that and an industrial
environment. What I was looking for
was stability. I came here from a com- online, but we’ve done all of those. Modern: What will you be doing on
pany that worked on large promotion- The industry is definitely changing and the AGV committee at MHIA?
al events for a variety of clients in the it’s exciting to be part of that.
automotive industry. I liked the idea Carlson: As vice chair, my role is to
Modern: Why do you think young learn the ropes because next year I
of working for one stable company
people should consider the industry? will be chair. But the thing we want
where I could make an impact.
Carlson: As with marketing, it’s the to get across is this idea that AGVs
Modern: Have you done that? chance to have an impact. I have and automatic carts are afford-
Carlson: Definitely. When I was hired, friends who are engineers for some able, flexible and reliable. You can
Webb wanted to do more public rela- of the automotive OEMs. They may automate a portion of your plant or
tions to raise their profile and take get assigned to work on one part, warehouse, and if your requirements
advantage of some new avenues to like a windshield, and that’s what change, you can change the solu-
make its products more available to they do every day. Working for a tion without having to renovate your
its customers. I don’t think you’d have company like Webb, you get to work entire building. That’s a concept
found anyone who could have imag- on an entire system. It’s constantly you’re seeing from the vendors at
ined that we’d have a Twitter page, be changing, and you can come up with trade shows, like ProMat, and not
on Facebook, or sell conveyor parts something innovative for a customer. just from Webb.

50 A U G U S T 2 0 0 9 / MO D E RN MATE R IALS HA NDL I NG mmh.com

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