11.07.2015 Views

Modern Materials Handling - August 2011

Modern Materials Handling - August 2011

Modern Materials Handling - August 2011

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

UP FRONT Breaking news you should knowIWLA announces the Sustainable Logistics InitiativeThe International WarehouseLogistics Association (IWLA) hascreated the first metric-driven,facility-output-based sustainablelogistics program for warehouseoperations in North America,called the Sustainable LogisticsInitiative (SLI).Program participants will reportand engage in a rigorous andobjective measurement process.Continuous improvement is benchmarked,and the entire process isverified by an outside independentorganization, The SustainableSupply Chain Foundation.“Many IWLA members haveHoneywell to acquireEMS TechnologiesHoneywell recently announced that ithas signed a definitive agreement to acquire EMSTechnologies, a leading provider of connectivitysolutions for mobile networking, rugged mobilecomputers and satellite communications.“This is another terrific transaction for ourscanning and mobility business,” said HoneywellAutomation and Control Solutions president andCEO Roger Fradin. “EMS strengthens our coremobile computing business and expands ouraddressable market with complementary newproducts, channel partners and entry into thewarehousing and port segments that we believewill be growth drivers for the business. This alsorepresents an opportunity to demonstrate ourproven acquisition integration process.”already adopted thepractices needed to demonstratetheir continuousimprovement process insupply chain sustainability,and others will learn quicklyhow to become partof the program throughparticipation in SLI,” saidIWLA chairman Linda C.Hothem, who is the CEOof Pacific American Groupand senior advisor toMatson Global DistributionServices. “The data collectedthrough SLI will inform ourindustry and our customers on thebest and most efficient means toimprove sustainable warehouselogisticspractices.”ISM July manufacturing reportdown from June; still showinggrowthA slowdown in manufacturing growthappears to be intact based on the most recent editionof the Institute for Supply Management’s (ISM)Manufacturing Report on Business.In its July report, the ISM reported that the indexit uses to measure the manufacturing sector—knownas the PMI—was 50.9%. This represents a 4.4% dropfrom June’s 55.3%, and June was up 1.8% from May.According to the ISM, any reading 50 or higher is asign of economic growth. But even with sequentialdeclines in two of the last three months, July marksthe 24th consecutive month economic activity in themanufacturing sector has expanded, with the overalleconomy showing growth for the 26th straightmonth.CEMA: Conveyor index slips 21% inMay, remains up from last yearThe Conveyor Equipment Manufacturers Association(CEMA) reported that its May <strong>2011</strong> Booked Orders Indexwas 173. Index in May is down 46 points or 21% from April<strong>2011</strong>’s Index of 219 (1990=100). The May <strong>2011</strong> Index representsan increase of 32% from the May 2010 Index of 131.CEMA’s baseline calculation uses the year 1990 as acomparison. Numbers to the right of theequation show the current state of the conveyorindustry as compared to 1990. Figuresabove 100 indicate growth; while anythingless indicates a contraction in the industry.mmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 3


THAT’S WHAT WE’RE ALL ABOUT.The success of your business hinges on consistently providing the highestquality products and services to the markets you serve. So does ours.For over half a century, we have successfully produced the finest materialhandling equipment that exceeds our customers’ expectations with...Greater fuel efficiencyLower maintenance costsLong-term reliability• Improved productivitywww.nissanforklift.com240 North Prospect Street • Marengo, Illinois 60152 • p: 800.871.5438 • e: nfcsales@nfcna.com


SPECIAL LIFT TRUCK ISSUEMike Coronado,distributiondirector at TheContainer Store,worked withfloor associatesCaptionto select thenew equipmentfor the DC.COVER STORYSYSTEM REPORT00 20 Headline The Container Store:Text Lift trucks contain the chaos00 HeadlineThe retailer’s lift truck distributor played a key role in optimizing aText new DC and securing a 30% improvement in process time.FEATURESA close attention to layout, design and equipment selection makes theSPECIAL REPORTmost of conventional materials handling processes in The Container00Store’sHeadlineDC.Text00 HeadlineSPECIAL REPORTText 31 Top 20 lift truck suppliersINFORMATION With sales on the MANAGEMENT rise for the second consecutive year, the worldwide00 industrial Headline lift truck market is revved up.Text39 Lift truck basicsPRODUCTIVITY SOLUTION00 HeadlinePHOTO: ED XXXX LALLO XXX28 Getting organized; improving productivityEQUIPMENT REPORTFEATURESEQUIPMENT REPORTLift trucks have come a long way since their introduction in the materialshandling arena in the 1920s. Today, they are smarter and stronger,Textand still the indispensable workhorses in our warehouses and DCs.INFORMATION MANAGEMENT44 15 ways the lift truck is evolvingToday’s lift trucks offer more in the way of technology, power andperformance than ever before. Here’s a look at the latest innovationsavailable in today’s trucks.PRODUCTIVITY SOLUTIONS48 Slow picking and errors arejust a memoryA crafty slotting solution helps Creative Memories achieve more than99.9% shipping accuracy and improve picking speed.49 Slotting reaps a bumper crop of benefitsWarehouse management solution uses several slotting principles tocontrol accuracy, production and overall pallet quality.VOL. 66, NO. 8PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,WAREHOUSING AND MANUFACTURINGDEPARTMENTS & COLUMNS3/ Upfront7/ This month in <strong>Modern</strong>16/ Lift Truck News18/ Lift Truck Tips: Alternative power50/ Supplement: Warehouses & DCs58/ Focus On: Packaging equipment67/ 60 seconds with...NEWS9/ Montwieler retires after 28 years ashead of ITA10/ Robotics orders jump 41% in first half of <strong>2011</strong>11/ Beumer offers Crisplant sortationsystems in North America12/ Plug Power to provide Kroger withGenDrive fuel cells12/ Coca-Cola bottler installs Crown fuelcell-powered forklifts13/ Toyota receives National Safety CouncilAward13/ INRO deploys forklift of the future14/ ITA names Feehan next executive director<strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> ® (ISSN 0026-8038) is published monthly byPeerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite200, Framingham, MA 01701. Annual subscription rates for non-qualifiedsubscribers: USA $119, Canada $159, Other International $249. Singlecopies are available for $20.00. Send all subscription inquiries to <strong>Modern</strong><strong>Materials</strong> <strong>Handling</strong>, 111 Speen Street, Suite 200, Framingham, MA 01701USA. Periodicals postage paid at Framingham, MA and additional mailingoffices. offices. POSTMASTER: Send Send address address changes changes to: <strong>Modern</strong> to: <strong>Modern</strong><strong>Materials</strong> <strong>Handling</strong>, PO Box 1496 Framingham MA 01701-1496.Reproduction of this magazine inwhole or part without written permissionof the publisher is prohibited.All rights reserved. © <strong>2011</strong> PeerlessMedia, mailingLLC.®mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 5


EDITORIAL OFFICES111 Speen Street, Suite 200Framingham, MA 01701-1496(800) 375-8015Michael LevansGROUP EDITORIAL DIRECTORmlevans@ehpub.comBob TrebilcockEXECUTIVE EDITORrobert.trebilcock@myfairpoint.netNoël P. BodenburgEXECUTIVE MANAGING EDITORnbodenburg@ehpub.comLorie King RogersASSOCIATE EDITORlrogers@ehpub.comSara Pearson SpecterEDITOR AT LARGEsara@moxiemarketingllc.comRoberto MichelEDITOR AT LARGErobertomichel@new.rr.comJeff BermanGROUP NEWS EDITORjberman@ehpub.comJosh BondCONTRIBUTING EDITORturbobond@gmail.comMike RoachCREATIVE DIRECTORmroach@ehpub.comWendy DelCampoART DIRECTORwdelcampo@ehpub.comDaniel GuideraILLUSTRATIONdaniel@danielguidera.comBrian CeraoloGROUP PUBLISHERbceraolo@ehpub.comPEERLESS MEDIA, LLCA DIVISION OF EH PUBLISHING, INC.Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING, INC.Brian CeraoloPUBLISHER ANDEXECUTIVE VICE PRESIDENTPEERLESS MEDIA, LLCMAGAZINE SUBSCRIPTIONSStart, renew or update your FREEmagazine subscription atwww.mmh.com/subscribe.Contact customer service at:Web: www.mmh.com/subscribeEmail: mmhsubs@ehpub.comPhone: 1-800-305-0633Mail: Peerless MediaP.O. Box 1496Framingham, MA 01701ENEWSLETTER SUBSCRIPTIONSSign up or manage your FREEeNewsletter subscriptions atwww.mmh.com/enewsletters.®Lift Truck Issue:MICHAEL LEVANSGROUP EDITORIALDIRECTORCelebrating the backboneof materials handlingWe break the <strong>Modern</strong> mold a bitthis month by focusing this issuefirmly on one piece of equipment—thetried and true backbone of thematerials handling industry, the lift truck.Why put all of our proverbial eggs inone basket? Well, as our reader researchhas revealed over the past three years, therecession has forced many fleet managersto park a large portion of their existingfleets while they’ve pushed their remainingactive trucks to their very functional limits—andbeyond. In most cases, that fleetof sidelined trucks is being converted intosimple spare parts, scavenged for bits andpieces to keep the worn and battered fleethobbling along.While we understand the realities behindthese recent fleet management practices,we also realize that it’s been a while sincemany <strong>Modern</strong> readers have taken the timeto survey just how far truck suppliers havecome in terms of technology, power andperformance. And if you’re about to finallyretire that tattered fleet, it’s best to have afull understanding of the options that haverecently hit the market.Enter <strong>Modern</strong>’s Lift Truck Issue, ourcomprehensive look at the current stateof the market, from the “new basics” oftruck design, to the application of existingtruck technologies on the floor, to a lookat where suppliers are headed with futuretruck development.To gain the full breadth of our coverage,I suggest that you digest this issue in apre-determined order. I’d start with associateeditor Lorie Rogers’ terrific overviewof the tried and true “basics” of lift truckTHIS MONTH IN MODERNdesign and application (page 39). It’s beena while since many fleet managers havebrushed up on these fundamentals, andRogers’ piece is a great re-introduction tocounterbalanced, narrow-aisle and low-liftpallet truck functionality.I’d then swing back to page 31 to geta feel for where the top suppliers stand interms of revenue and market penetration.And while those top suppliers are on yourmind, I’d spend some time with executiveeditor Bob Trebilcock’s System Report onThe Container Store (page 20) to see justhow far the supplier/distributor/user relationshiphas evolved over the past few years.In this case, the retailer’s lift truck distributorplayed a significant part in optimizing anew distribution center through new rackinglayout and slotting improvements on top ofits standard truck maintenance program assistance.In turn, the enhanced relationshiphelped The Container Store realize a 30%improvement in process time.And, if you’re eager to peer inside thecrystal ball to see where lift truck innovationis heading, I strongly suggest you wrapup with Trebilcock’s outstanding “15 waysthe lift truck is evolving” (page 44). Fromergonomics, RFID integration, advancedautomation and robotic functionally, to thedevelopment of the lithium ion battery,Trebilcock surveys the leading suppliers onhow the trucks of tomorrow will operate,look and feel.So, if it’s been a while since you caughtup on lift truck development and innovation,we got your covered. This celebrationof the backbone of materials handlingshould bring you up to speed in short time.MemberMember ofWinnerJesse H. NealCertificates of Meritfor JournalisticExcellenceOfficial Publication ofmmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 7


Alert Monitoring Service = Fast RecoveryReceive immediate notification of issues and recommended resolutionsThe Dematic Alert Monitoring Service is a solution that monitors your material handlingsystems and assesses the status of the mechanization/controls as well as operationalperformance in the warehouse. If an issue is revealed and corrective action is required,appropriate staff is notified. Included with the alert notification is the recommended actionand steps to take to address the situation. Alert Monitoring Service is all about earlydetection and pre-emptive action that maximizes uptime and overall system performance.The Dematic Alert Monitoring Service:Monitors – continuous assessment of entire warehouse operationAssesses – evaluates each situation and determines if something is out of syncNotifies – advises you if there is an issue and recommends resolutionLearn more about Alert Monitoring Service at www.dematic.us/amsor contact us at usinfo@dematic.com or call 1-877-725-7500.


ageBin INNOVATIVE PRODUCTSFrom Akro-Mils!InSightAkroDrawers Stackable CabinetsSuper-Size AkroBins®EarthSaverindustry spokesman.”Retirement plans? Montwieler sayshe has many delayed repair and improvementprojects to work on at the100-year-old house he shares with hiswife, Nancy. “I’ll be taking on all thetasks my father taught me—wallpapering,plastering, painting,” he saidwith a smile. An enthusiastic amateurchef and historian, he also plans tovolunteer at an area soup kitchen, topursue his study of World War I, andto spend more time as Grandpa Billwith his four grandchildren.Indicator ShelfMax Discover how innovative products fromAkro-Mils can add efficiency and organizationto your material handling. Call us at 800.253.2467or visit www.akro-mils.com for more information.Everything You Need To Store, Organize & TransportDedicatedto OurDistributorNetwork!10 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.comProCartSystem BinsAUTOMATIONRobotics ordersjump 41% in firsthalf of <strong>2011</strong>FUELED BY ITS BEST quarter in sixyears, the North American roboticsindustry jumped 41% in the first halfof <strong>2011</strong>, according to new statisticsreleased by Robotic Industries Association(RIA), an industry trade group.A total of 8,879 robots valuedat $577.8 million were ordered byNorth American companies in thefirst six months of the year. Whenorders from outside North Americaare added, the totals are 10,476robots valued at $667.9 million. “Thiswas the best first half for our industrysince 2007,” said Jeff Burnstein,president of RIA.The second quarter was particularlystrong, posting gains of 50%in units and 55% in dollars over thesame period in 2010.Burnstein attributed the majorityof growth to increased orders fromautomotive manufacturers and theirsuppliers, traditionally the largestcustomer for robotics. “With the revitalizationof the auto industry in theUnited States, robot orders to thesecustomers rose 60% in the first halfof the year,” he said.Non-automotive orders increased23% through June, led by gains inmetalworking (up 70%).Burnstein said some non-automotivecustomers who were slow topurchase robots in the first quarteraccelerated their buying in the secondquarter of the year.“Food and consumer goodscustomers placed orders for 60%more robots in the second quarterof <strong>2011</strong> than in the first, hopefully asign of strong growth going forwardin this sector,” he said. “The NorthAmerican robotics industry is on pacefor its best year since 2005 in termsof new order volumes, but this couldbe threatened if there is an economicdownturn caused by the lack of an


agreement in Washington on raisingthe debt ceiling.”Burnstein did cite one recentpositive development from Washington,the creation of a $500 millionAdvanced Manufacturing Partnershipthat includes $70 million for aNational Robotics Initiative.“This could have a very positivelong-term effect in keeping theUnited States a leader in robotics,both inside the factory and in awide-range of non-industrial roboticssectors,” he said.RIA estimates that some 205,000robots are now used in the UnitedStates. More than one million industrialrobots are used worldwide.PACKAGINGBeumer offersCrisplant sortationsystems in NACRISPLANT BRAND LOOP sortationtechnologies, systems and life-cyclesupport services are back in NorthAmerica under the Beumer Group,one of the largest designers, manufacturers,providers, and marketers ofautomated high-speed loop sortationsystems and services.A member of Beumer Group,Crisplant is a leading provider of sortationsolutions worldwide. Crisplantprovides solutions and lifetime supportfor airports, postal facilities, parceldistribution and warehouse and distributioncenters. Crisplant has led anddelivered projects that include many ofthe world’s largest and most advancedmaterials handling operations.Beginning on July 4, <strong>2011</strong>,customers in North America onceagain can refer to original Crisplantcustomer support, parts, with localinventory for fast fulfillment. Originallife-cycle support, including hotlineservice, preventive maintenance programs,controls and software optimizationpackages, and modernizationroad maps tailored to the uniqueOUTSTANDINGFrom Akro-Mils!AkroBins®Wire & Steel ShelvingLouvered Hanging SystemsVERSA/DeckTrucks Attached Lid Contmmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 11Shelf BinsStak-N-Store BinsHeavy-Duty Bin CabinetsDiscover how innovative products fromAkro-Mils can add efficiency and organizationto your material handling. Call us at 800.253.2467or visit www.akro-mils.com for more information.Everything You Need To Store, Organize & TransportUnsurpassedCustomerService!


equirements of your business areonce again available as well.At ProMat <strong>2011</strong> earlier this year,Tony Barr, vice president of marketingand business development forBeumer Corp., told <strong>Modern</strong> thatcustomers of Beumer and CrisplantNeed a Single SourceSolutions Provider forYour Conveyor Needs?Many conveyor manufacturers typicallyonly make certain types of conveyors.At Capitol Conveyors, Inc. we knowone size doesn’t fit all, that’s why we’rea full service, custom manufacturerof many different types of conveyors,including specials.We also offer complete solutions thatinclude systems engineering, equipment,installation and commissioning – allwith fast, flexible and efficientresponse times.• Motorized DriveRoller• Lineshaft• Belt Conveyors• Belt Driven Live Roller• Chain Driven Live Roller• Gravity• Towers• In Motion Weighing• Automated Print & Applyalike can expect a sea change in servicesfrom both companies. AmongBeumer’s sortation offerings is aredesigned crossbelt that uses fewerdrives per a given length of belt. Thepower draw of each driver is 75% less,and crossbelt systems can sort 4,000For More Information, Call:877-532-9070Talk to one ofour Sales Engineersand request a frEE quotefor your next project!to 45,000 units per hour, he said.“We’re taking a disciplined approachto product development andmaking sure sustainability is a keystrategic filter when looking at newinnovations,” he said. “<strong>2011</strong> appearsto be on track for significant growth,both for Beumer and the industry.”In 1944, Crisplant was founded inDenmark by Svend Christensen. Overthe years, the company developedmany sortation solutions. In 2000,Crisplant was acquired by FKI, whichlater changed its name to FKI Logistex.In 2009, when FKI Logistex waspurchased by Intelligrated, Crisplantgained independence and revertedfrom FKI Logistex to the Crisplant companyname. Later that year, Crisplantbecame part of the Beumer Group.FUEL CELLSPlug Power to provideKroger with GenDrivefuel cellsPLUG POWER, a leader in providingclean, reliable energy solutions,announced it has added Kroger to itsgrowing list of GenDrive customers.Plug Power will supply 161 GenDrivefuel cells to Kroger’s food distributioncenter in Compton, Calif. Theorder includes four Class 1 units forsit down counterbalanced trucks, 42Class 2 units for reach trucks and 115Class 3 units for pallet trucks.With this partnership, Kroger willpower its fleet of electric lift truckswith GenDrive fuel cells. BecauseGenDrive is fueled with hydrogen,the only byproducts created throughthe electrochemical energy-conversionprocess are heat and water.Coca-Cola bottler installsCrown fuel cell-poweredforkliftsCROWN EQUIPMENT announcedthat a fleet of 35 Crown FC 4500series counterbalanced, fuel cellpoweredforklifts were delivered toCoca-Cola Bottling Co. Consolidat-12 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


ed, the nation’s largest independentbottler for Coca-Cola. The truckswere installed at the company’s Charlotte,N.C., production center.The Crown FC 4500 series isdesigned to meet the demands ofheavy-duty applications, such ashigh-volume warehouse environments.The fuel cell model of the FC4500 maintains the same featuresand benefits presented by the standardmodel. It is one of more than20 models Crown has qualified to operatewith various fuel cells as part ofits fuel cell qualification program.SAFETYToyota receivesNational SafetyCouncil AwardTOYOTA MATERIAL HANDLING,U.S.A. (TMHU) announced thatToyota Industrial Equipment Mfg.(TIEM) was awarded the OccupationalExcellence Achievement Award bythe National Safety Council.The Occupational ExcellenceAchievement Award is given to companiesthat have a lost-time injuryrate of less than 50% of companies inthe same business classification. TheNational Safety Council tracks datain accordance with the federal OSHAcalendar year standard. During thelast calendar year, TIEM achieved alost-time incident rate less than 7%of the average rate in the same businessclassification.“Every associate, manager andexecutive at TIEM has safety as theirtop priority,” said TIEM’s environmental,health and safety managerDixon Churchill. “When associatesknow their managers truly care fortheir health and safety, it createsan environment where everyone isfocused on reaching the company’sbusiness goals. With TIEM’s focus onsafety, we see reduced absenteeism,lower turnover rates, higher productivityand better quality products.”AUTOMATIONINRO deploys forklift of the futureINRO HAS SUCCESSFULLY commissionedthe world’s first automatedstandard reach truck for a commercialwarehouse. A Linde RX17 reachtruck has been commissioned as theShip and StoreSafe&first phase of a potential seven-vehicledeployment at a central NorthIsland, New Zealand, site owned andoperated by global dairy giant, FonterraCo-Operative Group Ltd.SecureProtect Your Bulk IngredientsWith Buckhorn Intermediate Bulk ContainersBuckhorn reusable plastic IBCs, made from FDA-approved materials, are the ideal choiceto protect your bulk liquid or powder products. Perfect for a variety of industries toreduce transport costs, maintain quality and increase productivity, Buckhorn IBCs are:• Hygienic • Stackable & Collapsible • Durable • RFID Traceable • RecyclableCall Buckhorn at 1.800.543.4454 or visit www.buckhornibcs.comto get the facts and request a FREE on-site packaging assessment.©<strong>2011</strong> Buckhorn/Myers Industries, Inc. #09176mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 13


PerfectContainersto fit your needsPERFECT SIZE PERFECT STYLE PERFECT PRICEThousands of standard sizes!Dozens of styles!Vertical Carousel ContainersPlastic ShippingContainers & CasesDunnage and MoldedPlastic ContainersHorizontal Carousel ContainersNestable ContainersHopper Front ContainersDivider Systemsfor Vertical LiftsCALL FLEXCON NOWfor help in selecting the perfect containersand pallets to help make your materialhandling system 100% efficient!908.871.7000facsimile 908.871.1111www.flexcontainer.cominfo@flexconcontainer.comA patented system of camera and laser technologiescalled “Forkward-Sensing” allows the trucks to interfacewith a satellite tracking system and perform pick and putawaytasks with pallets of butter and cheese at heights ofmore than 10 meters. A fleet of unmanned vehicles is capableof handling 2,000 pallet movements per day across400 SKUs in the cool-store distribution center, wheretemperatures fluctuate between 4°C and -10°C.“Warehouses are becoming increasingly automatedand forklifts are no exception,” said Mark Templeton,CEO of INRO. “So far our customers have had to choosebetween retaining manually operated forklifts or implementingautomatic guided vehicles (AGVs) which lackflexibility. The technologies we have developed create athird option—a fully automated forklift that can be drivenwhen necessary. This has created the opportunity forforklift OEMs to make forked AGVs redundant.”ITA names Feehan nextexecutive directorThe Executive Committee of theIndustrial Truck Association (ITA)recently announced the new executivedirector of the association willbe Brian Feehan, vice president ofthe Propane Education & Research Brian FeehanCouncil (PERC). Feehan is set to takethe reins on Jan. 1, 2012, when Bill Montwieler, who hadbeen executive director since 1983, retires.“Brian is well known to all of us through his workat the Propane Education and Research Council,” ITApresident Jeff Rufener said. “He’s attended every ITAmeeting for the last six years, including the association’sExecutive Committee sessions and has contributedmightily to our air quality efforts; Brian joined theITSDF Board of Trustees last February. His previousexperience with the World Liquefied Petroleum Gas Associationin Paris places him in good stead to continueour efforts in Europe, Japan and China.”In his role with PERC, Feehan helps the industryfundedorganization, focus on engine fuel, research anddevelopment, safety and training, agricultural markets,and residential and commercial markets. Prior to hisrole at PERC, he served as the executive director of thePropane Vehicle Council (PVC). The PVC was the nationalorganization representing the propane industry’sengine fuel interests.Prior to joining the PVC, Feehan served as the projectsdirector for the World LP Gas Association (WLPGA)in Paris. He holds a bachelor’s degree in political scienceand a master’s degree in public administrationfrom George Mason University.


www.hyundai-ce.comThe New Standardfor Forklift TrucksFORKLIFT LINE -UPLPG Forklift 1.5 - 5.0TonDiesel Forklift 1.5 - 25TonBattery Forklift (Counter Balanced)1.6 - 5.0TonElectric Order Picker10BOP-7/13BOP-7Reach Truck (Pantograph)1.5 - 2.3TonReach Truck (Standing) 1 - 2.5TonReach Truck (Seated) 1.4 - 2.5TonElectric Towing / Platform Truck40TA-7/15PA-7HEAD OFFICE(REP. of KOREA) Tel.: 82 2 746 4609 Fax: 82 2 746 7444~5E-mail: sisky20@hhi.co.kr www.hyundai-ce.comHCE AMERICAS(U.S.A) Tel.: 1 847 437 3333 Fax: 1 847 437 3574 www.hceamericas.comHHI EUROPE(BELGIUM) Tel.: 32 14 56 2200 Fax: 32 14 59 3405~6 www.hyundai.euHHI BEIJING(CHINA) Tel.: 86 10 8321 3377 Fax: 86 10 5143 8502 www.hyundai-bj.comDUBAI BRANCH OFFICE(U.A.E)Tel.: 971 4 425 7995 Fax: 971 4 425 7996 E-mail: sbyun@hhi.co.krISTANBUL BRANCH OFFICE(TURKEY)Tel.: 90 212 345 1261~2 Fax: 90 212 345 1263 E-mail: eunsoo@hhi.co.krMOSCOW BRANCH OFFICE(RUSSIA)Tel.: 7 495 258 1381 Fax: 7 495 258 1382 E-mail: leokang@hhi.co.kr


lift truck NEWSSky-Trax, Rush Tracking Systemsannounce mergerBy Jeff Berman, Group News EditorRush Tracking Systems, a provider ofadvanced tracking solutions, software andservices for manufacturing and warehouseoperations, and Sky-Trax, a provider of patentedreal-time location systems (RTLS) for trackinggoods, vehicles and guiding autonomous vehicles,have merged to form a single company.Rush Tracking and Sky-Trax officials said theobjective of the deal was to form a vertically integratedprovider of smart truck tracking systemsfor manufacturing and warehousing environments.The deal was made official on July 8.The companies will continue to maintain theirindividual names and sell products and servicesunder their own brands. The companies addedthat they expect “rapid growth” through directsales to top customers, coupled with growthfrom a global network of value-added resellersand suppliers.Rush Tracking Systems director of marketing PaigeO’Brien told <strong>Modern</strong> that the impetus for this deal was to“accelerate growth and solidify leadership in the SmartTruck Solution space.”And Sarah Brisbin, vice president of marketing at Sky-Trax, said there was not a specific “need” for this deal, asmuch as an opportunity to bring two talented companiestogether, adding that this deal had been in the works forless than six months.When asked what the biggest takeaways of this dealare for customers of both companies, she explained thatthe merged entities offer up a larger team with a fullsuite of Smart Truck solutions with financing to accelerategrowth both domestically and internationally.“The biggest improvements will be in the variety ofsolutions we offer for optimizing safety, asset utilization,labor productivity and inventory accuracy as well as improvedsupport, services and accessibility to resources,”said Sky-Trax’ Brisbin. “With the data and business intelligencetools we offer, our customers gain the ability toThe merger forms a vertically integrated provider of smart trucktracking systems.implement improvements to their operations to improveaccountability, productivity and accuracy.”Officials from both companies said that this new companydelivers a comprehensive suite of patented smarttruck tracking solutions that optimize personnel safety,asset utilization, labor productivity and inventory accuracywithin manufacturing and warehouse operations. Andby automatically collecting real-time lift truck load andlocation visibility data, they explained that customers areable to reduce or eliminate the inaccuracies associatedwith driver input of data, adding that the resulting businessintelligence data also allows customers to gain theinsights needed to implement immediate improvementsin accountability, safety and productivity.What’s more, they also said these solutions automaticallyidentify the load on the front of a lift truck by leveragingeither bar code, RFID or optical data collectiontechnologies and then track the position of the materialshandling device with Sky-Trax’s optical indoor positioningsystem.16 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


Mitsubishi goesmobileMitsubishi Forklift Trucksannounced the launch ofits new mobile Web site,m.mit-lift.com, making it easier forcustomers to access forklift productinformation and connect with localdealers while on the go through theirmobile devices. The new site includesMitsubishi product information, alocal dealer search function, and easyaccess to finance information andpromotions.The Web site allows users to viewforklift specifications and includesthe option to request a quote, emaila product brochure or downloadthe digital brochure directly from amobile device. The dealer locatorfeature gives customers quick andeasy access to dealership addressesand phone numbers and includesgeo-tracking capabilities for somemobile devices.“We’re pleased to introduce thenew Mitsubishi Forklift Trucks mobileWeb site,” said Jeff Rufener, vicepresident of marketing at MitsubishiForklift Trucks. “More and more peopleare on the go these days, and themobile Web site will make searchingfor a new forklift or finding a localdealer even easier than before.”Crown winsindustrialdesign awardThe Industrial Designers Societyof America (IDSA) has rankedCrown Equipment again asone of the world’s best industrialdesigners. Crown was recently honoredwith a <strong>2011</strong> Gold InternationalDesign Excellence Award (IDEA) forthe Crown WT 3000 series of pallettrucks.Crown has won more IDEAs in theCommercial and Industrial Equipmentcategory in the last 11 years than anyother company. This is the 6th consecutiveand 19th overall IDEA awardfor Crown.The Crown WT 3000 series of pallettrucks, which is available in Europe, isdesigned to accommodate intense pallettruck conditions and high throughputdemands. The Crown WT 3000series combines engineering, durability,performance and operator comfort,and is loaded with innovative featuressuch as the Crown Access 1 2 3, ACtechnology, and e-GEN braking systemto lower operating costs and improveenergy efficiency. The FlexRide suspensionsystem provides riding comfortduring trailer loading and transport,and the optional weight-adjustableFlexRide platform reduces impactshock to the driver.According to Clive Roux, IDSA’sCEO, “The IDEA program is consideredby many as the ‘Oscars’ of designcompetitions because the judgingprocess is rigorous and judged bythe experts in their field.”WeManufactureWarehouse Solutionswww.interlakemecalux.comwww.interlakemecalux.com


Mike Coronado,distribution director20 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


MODERN system reportThe Container Store:Lift trucks containthe chaosTheBy Bob Trebilcock,Executive Editorretailer’s lift truck distributorplayed a key role in optimizinga new distribution center andsecuring a 30% improvementin process time.You would expect a companyknown as the original storage andorganizational retailer to be, well,organized when it comes to storagein its new distribution center.And, that is certainly the case atthe 1.1-million-square-foot facilityThe Container Store built inCoppell, Texas.The facility stands out notjust for its efficient use of storage,but also for the role playedby its lift truck distributor (MalinIntegrated <strong>Handling</strong> Solutions,malinusa.com) and manufacturer(Raymond, raymondcorp.com) in the design and planningof the DC.The Container Store workedclosely with the distributor on theracking layout and slotting. Byoptimizing the design and materialflow through the facility, TheContainer Store was able to rightsize its lift truck fleet while simultaneouslyimproving operationsand adding 350,000 square feetof space. Among the most importantmeasures of success: a 30%improvement in process time.“When you’re expanding from450,000 square feet to 800,000square feet, one of the biggestconcerns is travel time,” says MikeCoronado, distribution director.“The fact that we saw a 30%improvement in travel time whileexpanding the space our associatescover is the true measure ofthe success of the project.”While The Container Storeis using just 800,000 square feettoday, it has the option of addingthe additional 300,000 square feetin the future. The facility enablesa centralized distribution concept,servicing the retailer’s 49 retailstores—each of which receivesfull truckload replenishmentdeliveries—as well as a growingdirect-to-consumer business.The facility makes the most ofconventional warehouse processeswith a fleet comprised of 51 lifttrucks:• 24 pallet trucks for floorlevel,primary picking to processdaily orders,• 15 double-deep reach trucksfor moving pallets from the dockinto the racking reserves and movingreserves down to primary locationson the floor level,• 4 stand-up counterbalancedtrucks for unloading tractor trailers,• 4 orderpickers for a fewmmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 21


modern system reportspecified areas with above-ground levelpicking and cycle counts,• 2 tow tractors for moving trashhoppers and recycling materials tocompactors, and• 2 sit-down counterbalanced trucksfor moving heavier loads.In addition, conventional materialshandling processes are enhancedthrough best-of-breed warehouse andlabor management software solutionsas well as slotting, dock and yard managementapplications developed inhouseby The Container Store.Most importantly, Coronado says,the facility demonstrates The ContainerStore’s commitment to long-term partnershipswith its vendors and inputfrom all of its associates. “We are anemployee-first culture,” he says. “Weestablished focus groups to involve ourfloor personnel in the selection of criticalequipment, such as the lift truck andrack vendors.”Let’s get organizedThe first Container Store opened inDallas in 1978. The small, 1,600-squarefootspace offered a never-before-assembledcollection of storage and organizationproducts designed to save time andspace and simplify its customers’ lives.In doing so, it originated a completelynew category of retailing, that of storageand organization. Since then, the companyhas experienced continuous double-digitgrowth. Today, 49 stores acrossthe country average 25,000 square feetand offer more than 10,000 innovativeproducts. Store No. 50 will open soon.The need for a new distributioncenter became apparent back in 2002.At the time, The Container Store wasoperating from a 350,000-squarefootfacility, with 300,000 squarefeet committed to distribution. Theremainder housed corporate officespace. In addition, the retailer had asatellite facility with 150,000 squarefeet. A 10-year sales growth projectionstudy concluded that a largerfacility would be necessary to containits distribution center and corporateoffices.That study led to two years of planningto develop and build the newDC. During that time, Coronado andhis distribution and logistics managementteam had the challenging task ofdesigning the DC, filling it with newThe Container Store’s employeefirstculture led to the installation ofoverhead fans to keep the facilitycool. Associates played a key role inthe selection of equipment in the DC.22 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


TAKE A LOOK UNDER THE HOODCUTS 4X MOREthan a single-edge fixed bladeSmartly engineered, the new OLFA SK-10 Concealed Blade Safety Knifefeatures an adjustable blade positioning design which allows for 4 cuttingpoints on a single-edge utility blade. Developed to give you 4x more cuts onshrink wrap, plastic strapping, leather, sacks, bags and more, versus asingle-edge fixed blade.A perfect example of OLFA engineering at its best.Call your OLFA rep today, or 800-962-OLFA (6532) to learn more about ourtrial program, and uncover the power of 4x more cuts.©<strong>2011</strong> World Kitchen, LLC. OLFA is a registered trademark of OLFA Corporation Japan, used under license by World Kitchen, LLC.


modern system reportequipment and getting all systems integratedand running.One of the questions the team consideredwas whether to alter the distributionstrategy. Instead of offices andorder fulfillment activities under oneroof, would a network of regional distributioncenters be more cost effective?The answer, at least for then, was no.“At this point in our growth cycle, it stillmakes sense for us to service our businessfrom one central DC, even withhigh fuel prices,” Coronado says.A centralized DC also made sensefrom the viewpoint of The ContainerStore’s unique corporate culture, aculture that influenced the design ofthe facility. “Our employee-first cultureinfluences everything we do,” saysCoronado. “We believe that communicationis leadership. Having all of ouroperations under one roof is consistentwith that philosophy.” For instance,the retailer’s merchandise buying teamis located at the facility. “If we have aproblem with a product, we can solveit together right here,” Coronado says.Among the goals for the new facilitywere to:• maintain and improve productivitywhile expanding the size of the facility,• integrate direct-to-consumer andstore replenishment activities in onefacility, to keep one inventory thatcould satisfy both types of orders, and• create an employee-friendly workenvironment, despite the high heatand humidity in that part of Texas. “Wewanted world-class distribution in anenvironment that would reflect thatwe are the best company to work for inAmerica,” Coronado says.To accomplish those goals, TheContainer Store worked with a lift truckdistributor and materials handling integratorin nearby Addison, Texas.“We knew that attention to theselection of equipment and the layoutof the facility was going to be criticalto if we were going to improve productivity,”Coronado says. “They came tounderstand our business completely, sothat we had a real trust when they toldus what would work and what wouldnot work.”Among the major changes implemented:Lift truck changes: Replacingturret trucks that serviced very narrowaisle racks (5-foot aisles and 20-feet ofstorage) with reach trucks to service30-foot tall, double-deep pallet rackswith 11-foot aisles.Storage changes: Implementinga new slotting strategy built aroundkeeping the best sellers close to thedock doors and slow moving items inless convenient locations.A new slotting strategy has a significantimpact on equipment selection,along with productivity. “We wanted tokeep a five-day supply of our fastestmovingSKUs in a forward pick location,whether that supply is five casesor 500 cases,” Coronado explains. “Theslotting strategy went a long way todetermining the kind of rack we neededas well as the lift trucks that would berequired to service them.”For instance, double-deep racks andreach trucks are used for SKUs withmultiple pallets in a forward pick locationwhile stockpickers are used forhigh bay replenishment of slower movingSKUs and riders are used for casepicking in zones.Today, he adds, “We continuouslyreslot. It is imperative if we’re going toutilize the cube of the space and minimizethe travel time of our pickers.”Coronado credits the slotting strategywith improving material flow throughthe facility, despite the increased size.Leveraging associatesThe Container Store’s employee-firstculture also played a critical role in thedesign of the facility and the selectionof the equipment.More than 50 lift trucks, including pallet trucks (shown) for floor-levelprocesses like primary picking, keep the facility humming.24 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


HMI controllerMotion controllerLogic controllersDrives controllerNew, flexible machine control offers100% flexibility for your machines.Optimized control; shorter time to marketMaterial handling machines today need to be faster, more flexibleand able to solve more complex automation functions thanever before. OEM machine builders are constantly looking atinnovative ways to build energy-efficient machines, reduce designand development costs, and improve their time to market.Flexible machine control incorporates SoMachine , a singlesoftware suite that runs on multiple hardware control platforms,such as HMI, motion, drive, and logic controllers. WithSoMachine you need only one software, one cable, and onedownload to design, commission, and service your machine.SoMachine minimizes your design time and reduces your time tomarket.Flexible machine control is part of our brand newMachineStruxture solution, designed to take complexity out ofthe business. In addition to our new architecture, we also offerco-engineering services. With innovative help from our experts,you can design the optimal solutions for your customers. Weimplement the latest technological evolutions and provide uniquehands-on industry application knowledge that helps you stayahead of the competition.Flexible machine controlTo reach 100 percent flexibility and optimization,flexible machine control incorporates predefinedand proven automation architectures andfunctions and embeds intelligence in multiplehardware control platforms. A single softwaresuite helps you to develop, program, andcommission your machines.One softwareenvironmentOne software suiteto develop, program,and commission yourmachines, requiring onlyone tool, one download,one connection, and oneproject fileMultiplehardwarecontrolplatformsEmbedded intelligencewhere it is neededLogicControllerSoftwareSoMachineMotionControllerHMIControllerMachinesDriveControllerStart designing, maintaining,and commissioning your machines ina single environment. Get your FREEtrial copy of SoMachine software!Visit www.SEreply.com Key Code e474v©<strong>2011</strong> Schneider Electric. All Rights Reserved. Schneider Electric, SoMachine, and MachineStruxure are trademarks owned by Schneider Electric Industries SAS or its affiliated companies.1415 S. Roselle Road, Palatine, IL 60067 • Tel: 847-397-2600 • Fax: 847-925-7500 • www.schneider-electric.us • 998-5514_US


MODERN system reportTo leverage the insight and experienceof the associates who would beusing the equipment each day, TheContainer Store set up focus groups totest, analyze and choose the best equipmentand racking to do their jobs. “Allof our employees have a sense of ownership,”Coronado says.For instance, Coronado and histeam narrowed down the list of potentialreach truck vendors to three. At thatpoint, a focus group of associates onthe floor evaluated reach trucks fromeach of the three vendors for six weeksbefore making a recommendation.Similar focus groups were involved inthe selection of the racking and batterymanagement systems.That employee-first culture influencedthe working environment of thefacility. Instead of the industrial greycolor common to most distribution centers,The Container Store chose a colorscheme based on the Dutch painterPiet Mondriaan, using bright, primarycolors. The retailer also worked withengineers to install 71 high-velocity,low-speed fans and 48-inch exhaustfans. The fans are part of a buildingautomation system that controls thelighting and fans in the building to keepit as cool as possible in the Texas heat.“Sensors only turn on the lightingwhen someone is working in an area,”Coronado says. “The system also operatesthe fans based on the temperatureand humidity inside and outside of thefacility.” For instance, in the mornings,when it is likely to be cooler outsidethan inside, exhaust fans move warmair out of the building. The low-speedfans, meanwhile, keep air in the buildingmoving. One day last <strong>August</strong>, thetemperature inside the DC was 86degrees when the outside reached 105.Staying organizedWhile the facility has been up and runningfor several years, The ContainerStore continues to tweak the design.In the near future, for instance,Coronado is adding voice recognition toimprove picking processes. “We thinkour productivity will improve, accuracywill improve and safety will improve,”he says.As with the selection of lift trucks,The Container Store established afocus group of floor associates, whoare eager to bring in the new technology.“All of our indicators reflect continuousimprovements year over year,”Coronado adds. “But what we also celebrateis that our people feel and believethat they are working in a world-classdistribution center.” Find what you’re looking for.www.MMH.comA true industry resource for materials handling.26 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


modern system reportGetting organized, improvingproductivityA close attention to layout, design and equipmentselection makes the most of conventional materialshandling processes in The Container Store’s DC.By Bob Trebilcock, Executive EditorThe Container Store,Coppell, TexasSize: 1.1 million square feet available/810,000square feet in useProducts: storage and organization productsSKUs: 10,000Throughput: 75 truckloads per week average/120truckloads per week during peakShifts: 7 days/2 shiftsEmployees: 240 to 300, depending on seasonalfluctuationsThe Container Store’s Coppell,Texas, facility was designed tomanage store replenishment anddirect-to-consumer order fulfillment.Receiving: Inbound shipments aredelivered on Monday through Friday.The facility receives (1) between 25 to30 loads per day and 75% of shipmentsare floor-loaded containers or trailers.Once the inbound receivers identifythe vendor and verify the receiptagainst a purchase order, the merchandiseis either palletized at the dock (2)or conveyed to a palletizing station atthe dock. Product is scanned to a palletthat is tracked in the warehouse managementsystem (WMS) by a licenseplate bar code. The Container Storeuses yellow license plate bar codes sothat it is easier for associates to identifywhich pallets are ready for storage.Putaway: Storage is directed by theWMS. Once a lift truck driver scansa license plate bar code, the WMSchooses a putaway location in thereserve storage areas located throughoutthe facility (3). Putaway is donewith reach trucks.Picking: A system planner will analyzethe direct-to-consumer and replenishmentorders available for fulfillmentand will determine what work will beDirect-toconsumerDirect-toconsumerstagingshipping 9“launched,” or initiated, each morning.That, in turn, sends a signal to the shippingdepartment to plan the transportationthat will be required to ship orders.Finally, orders are also sent to the labormanagement system, which determineshow many hours will be required to fillthe orders. The work is also distributedacross the 18 different picking zones(4) where product is stored. Product isslotted in picking zone based on a varietyof criteria, including the velocity ofmovement, the type of product and fullcase and split-case picks.Store replenishment: Based onthe orders and time required to fill3Reservestorage3ReservestorageDirect-toconsumerconveyor4Picking1084Picking7Direct-toconsumerpacking2 Receivingprocessing4Picking4Picking4PickingTruckloadstaging4Picking56Truckloadshipping3Reservestorage2 Receivingprocessing1Receivingdocks1Receivingdocks28 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


Critical Industry Newsat Your Fingertips!CRITICAL TOPICS<strong>Modern</strong> <strong>Materials</strong> Logistics Management Supply Chain Management<strong>Modern</strong> <strong>Materials</strong> Logistics Management Supply Chain ManagementCritical Topic areas helpyou develop strategies andexpand your knowledge.Each topic provides youwith the news, information,and resources you need —each day.• Automation• Conveyors & Sorters• Inventory & Picking• Loading DockEquipment• Mobile & Wireless• Shipping Pallets• Storage Systems• Containers & Totes• Energy & Sustainability• Lift Truck & Fork Lift• <strong>Handling</strong> & WarehouseErgonomics• Packaging• Software & Technologywww.mmh.com/criticaltopics


MODERN system reportthem, shift supervisors assign associatesto the pick zones (4). They receivework assignments on an RF scanningdevice and pick to a pallet. In additionto telling an associate what to pick, thesystem also tells them how long eachassignment should take based on theengineered labor standards in the labormanagement system. The system willtell the associate where to start picking,when the order is complete, directthem to the staging location (5) on adock for full truckload shipments (6)and finally, direct them to their nextassignment.Direct-to-consumer: The pro-Hoggingthe Spotlight!And wHy not? For tHE pASt 100 yEArS, nobody HASmAtcHEd tHE work cApAcity oF our ironclAd ® bAttEriES.The reason is simple: square tubes expose more surface area of the positive plates tothe electrolyte, which delivers higher sustained voltages (and higher work capacity)than in round or flat plate designs, throughout the discharge cycle.We call this the Ironclad ® Effect, because it’s an advantage you get with every Ironcladbattery from EnerSys ® . To find the Ironclad battery that’s right for your application,call 1-800-EnerSys.Ironclad ® square tube technology provides 22% to 67% more positivesurface plate area, depending on battery type and size. Greater porosity offiberglass material allows better electrolyte circulation for higher voltages.Exclusively Square. Exclusively powerful.Exclusively ironclad.cess for direct-to-consumer orders issimilar to store replenishment, exceptthat orders are picked to a cart. Eachcart can accommodate 9 to 12 ordersat a time, which are picked in batches.Once a batch has been picked, theassociate delivers the cart to a packingstation (7), where the orders arepacked for shipment. The associate isthen assigned to another cart.Shipping: Pallets for store replenishmentare staged at the dock door (5)assigned to that order. The majority of thetrailers (6) are floor loaded. Dependingon the product, trailers are maximized bycube or weight. To initiate the process,the loader scans the license plate bar codeof the pallet he is working on, and continuesloading until the trailer is complete.Since stores have minimal stockrooms, most deliveries are made at 5a.m. so that store associates have timeto unload trucks and move productdirectly to the floor. For that reason,trailers are loaded by 3 p.m. each day.For direct-to-consumer orders, once apackager finishes an order, the cases areplaced on a conveyor (8) and delivered toa manifest point (9). Shipping labels areapplied and the cases are loaded directlyinto the parcel shipper’s trailers (10).System suppliersSystem design and integration: MalinIntegrated <strong>Handling</strong> Solutions, malinusa.comLift trucks: Raymond, www.raymondcorp.comBattery system: Carney Battery <strong>Handling</strong>,www.carneybatteryhandling.comConsulting group: St. Onge,www.stonge.comConveyor: Hytrol, www.hytrol.comPallet rack: Frazier Industrial Rack, www.frazier.comWMS: Catalyst (CDC Corp), www.cdccorporation.net/en/Catalyst.aspxLabor management: RedPrairie, www.redprairie.comSlotting, yard and dock managementsoftware: The Container StoreBar code scanning: Motorola Solutions,www.motorolasolutions.comVoice recognition: Lucas Systems, www.lucasware.comHigh-velocity fans: MacroAir Technologies,www.macro-air.com30 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


modern special reportlift trucksuppliersWith sales on the rise for the secondconsecutive year, the worldwide industriallift truck market is revved up.By Lorie King Rogers, Associate EditorLast year, <strong>Modern</strong>’s Top 20 lift truck suppliersstory started on an upbeat note. It read: Theworldwide industrial lift truck industry spent thebetter part of 2009 in a rut. Sales were down 39%,but it appears the worst may be over.So, one year later, did we get it right? Notonly did we hit the right note, we watchedthe lift truck industry take it even higher thanexpected. Last year when <strong>Modern</strong> spoke withJeff Rufener, president of the Industrial TruckAssociation (ITA, www.indtrk.org) and vice presidentof marketing for Mitsubishi CaterpillarForklift of America, industry sales figures wereup 40% over the same time period as the previousyear. But he didn’t expect that rate to continuethroughout 2010. Happily, Rufener admitshe was wrong. That rate of increase held up, andNorth American distributors saw 2010 ordersfinish up 40% better than in 2009.Hold on, though; Rufener still is cautious.He says business was good last year and is betterthan expected this year, but it’s still fragile.mmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 31


SAVESPOWER.CREATESPOWER.ECO-PERFORMANCE


At Raymond, we believe the key to success of your warehouse operations isefficient material handling. That’s what we call Raymond Eco-Performance. EveryRaymond ® lift truck is designed and engineered to provide the maximum economicand ecologic benefits, so your warehouse operation saves power, creates power,lowers costs, and increases productivity.SAVES POWER Raymond’s exclusive ACR Systemprovides longer run-times between charges, whichresults in reduced battery changes, reduced kilowattuse, and reduced CO 2emissions as well.CREATES POWER With regenerative braking,Raymond lift trucks save energy and result in lessbrake wear. When lowering their forks, they alsoextend battery life.$LOWERS COSTS Raymond lift trucks provide you alower cost per pallet move. And by requiring less labor,it extends the life of your trucks themselves.INCREASES PRODUCTIVITY Raymond lift trucksmove more pallets per hour than competing models.Faster cycle times and more pallets mean lessdowntime and more performance.MODEL 7400 REACH-FORK ® TRUCKHow efficient is your fleet?Learn more about Raymond Eco-PerformanceCall today • 1-800-235-7200Scan this QR code with yoursmartphone for exclusive content.©<strong>2011</strong> The Raymond Corporation, Greene, NY


modern special reportITA’s lift truck classesThe Industrial Truck Association(ITA, www.indtrk.org) has definedseven classes of lift trucks, orforklifts, which are defined by thetype of engine, work environment,operator position and equipmentcharacteristics.Forklift classes include:• Class 1: electric motor trucks withcushion or pneumatic tires• Class 2: electric motor narrowaisle trucks with solid tires• Class 3: electric hand trucks orhand/rider trucks with solid tires• Class 4: internal combustionengine sit down rider forklifts withcushion tires, suitable for indooruse on hard surfaces• Class 5: internal combustionengine sit down rider forklifts withpneumatic tires, suitable foroutdoor use on rough surfaces• Class 6: electric or internalcombustion engine powered, riderunits with the ability to tow (ratherthan lift) at least 1,000 pounds• Class 7: almost exclusivelypowered by diesel engines withpneumatic tires, these units aresuitable for rough terrain andused outdoors.Since mostly classes one throughfive are used in materials handlingapplications inside the four walls,<strong>Modern</strong> has only specified those onour supplier table.One reason for the fragile condition is manufacturing.Manufacturing had been a bright spot in the economicrecovery, says Rufener, but that has started toslow recently. Meanwhile, unemployment is above 9%and gas is hovering at $4 a gallon.On the up side, one solid contributor to the lift truckindustry’s annual growth is the fact that capital goodsare a cyclical business. “Later on in 2010, we saw dealersrebuilding inventory and replenishing their rentalfleets, which they hadn’t done in several years,” Rufenersays. “This reflects increased customer demand and isa direct reflection of the economic activity dealers seein their territory and in their expectations for futuregrowth.”Back in blackSo, the future looks good, but what about today? That’salso looking good, and the proof is in the numbers.According to ITA’s worldwide industrial truck figures,shipments were up 132% in 2010. (See the “Worldwidelift truck market” table.)This is not just a North American phenomenon: LastWorldwide lift truck marketOrdersShipmentsRegion 2009 2010 % Change 2009 2010 % ChangeEurope 200,311 259,932 130% 207,082 245,512 119%Americas 118,929 181,060 152% 128,246 152,160 119%Asia 206,531 322,953 156% 207,207 314,307 152%Africa 9,721 15,534 160% 9,953 14,243 143%Oceania 11,340 14,973 132% 12,451 14,468 116%Total 546,832 794,452 145% 561,939 740,690 132%Source: These figures are from the World Industrial Truck Statistics organization.ITA’s lift truck classificationsClass 1, Lift Code - 1Counterbalanced Rider Type,Stand UpClass 1, Lift Code - 4Three Wheel Electric Trucks,Sit DownClass 1, Lift Code - 5Counterbalanced Rider,Cushion Tires, Sit DownClass 1, Lift Code - 6Counterbalanced Rider,Pneumatic or Either TypeTire, Sit DownClass 2, Lift Code - 1High Lift Straddle33 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


Top 20 lift truck suppliers in 2010RankCompany2009Rank2010 revenue* North American brands World headquarters1 Toyota Industries Corp. 1 $5.9 billion Toyota, Raymond Aichi, Japan2 Kion Group 2 $4.7 billion Linde, Still OM, Baoli Wiesbaden, Germany3 Jungheinrich Lift Truck Corp. 3 $2.4 billion Jungheinrich Hamburg, Germany4 Crown Equipment Corp. 4 $1.8 billion Crown, Hamech New Bremen, Ohio4 NACCO Industries 5 $1.8 billion Hyster, Yale Cleveland, Ohio6 Mitsubishi Caterpillar Forklift 6 $1.2 billion Mitsubishi, CAT Sagamihara, Japan7 Komatsu Utility Co. 7 $1 billion Komatsu, Tusk Tokyo, Japan8 Nissan Forklift Corp. 9 $900 million Nissan, Barrett, Atlet Tokyo, Japan9 TCM Corp. 10 $889 million TCM Tokyo, Japan10 Anhui Forklift Group 8 $777 million Heli Hefei, Anhui, China11 Nippon Yusoki Co. 11 $747 million Not available in North America Kyoto, Japan12 Clark Material <strong>Handling</strong> 13 $570 million Clark Seoul, South Korea13 Doosan Infracore 12 $475 million Doosan Infracore Seoul, South Korea14 Zhejiang Hangcha EngineeringMachinery Co.15 $313 million** HC Hangzhou, China15 Hyundai Heavy Industries 16 $258 million Hyundai Ulsan, South Korea16 Tailift 17 $125 million** Tailift, World-Lift Taichung, Taiwan17 Combilift 18 $110 million Combilift Monaghan, Ireland18 Hubtex 20 $75 million** Hubtex Fulda, Germany19 Hytsu 19 $69 million Hytsu Shanghai, China20 Godrej & Boyce Manufacturing NA $67 million Not available in North America Mumbai, India*Fiscal year 2010 worldwide sales revenue; figures based on foreign exchange rates as of 12/31/10.**Figure based on industry estimateyear, shipments were up around the globe.• Asia experienced the biggest jump, with a 152%increase in shipments. The region went from a 23%decline in 2009 shipping 207,207 units to shipping314,307 units in 2010.• Africa was right up there with an increase of143%. After shipping 9,953 units in 2009 and experiencinga 40% decline, the African region shipped14,243 units in 2010.• Europe shipped 245,512 units in 2010, whichClass 2, Lift Code - 2Order PickerClass 2, Lift Code - 3Reach Type OutriggerClass 2, Lift Code - 4Side Loaders, Turret Trucks,Swing Mast and ConvertibleTurret/Stock PickersClass 2, Lift Code - 6Low Lift Pallet and Platform(Rider)Class 3, Lift Code - 1Low Lift Platformmmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 34


ITA class of trucks manufacturedClass 1 Class 2 Class 3 Class 4 Class 5x x x x xx x x x xx x x xx x x x xx x x x xx x x x xx x x x xx x x x xx x x xx x x x xx x xx x x x xx x x x xx x x x xx x x xx x x xx x xx x x x xx x x x xx x x x xresulted in 119% increase after experiencing a decline of48% in 2009.• The Americas also experienced a 119% increase in2010 after a decline of 43% in 2009. The region shipped152,160 units in 2010, compared to 128,246 in 2009.• Oceania also overcame a 48% decline. In 2009 theregion shipped 12,451 units, compared to 14,468 units in2010, resulting in a 116% increase.In total, worldwide shipments rose from 561,939 in2009 to 740,690 in 2010, an impressive 132% increase.With the numbers calculated and each of the worldwideregions performing well, the Top 20 lift truck suppliersalso performed well independently.The Top 10The top suppliers are at the top of the list again thisyear and almost in the exact order. Last year’s leadingsuppliers —Toyota, Kion, Jungheinrich, NACCO andCrown—continue to own the top five positions. (See thetable for the complete list of suppliers.)Toyota, which manufactures Toyota and Raymondbrands, remains at No. 1 with $5.9 billion in revenue,up from $4.6 billion in 2009. The Kion Group, whichincludes North American brands Linde, Still, OM andBaoli, retains the No. 2 position with $4.67 billion in revenue,up from $4.1 billion.Jungheinrich holds on firmly to the No 3. spot with$2.4 billion in revenue, up slightly from $2.3 billion in2009. Crown and NACCO, which ranked in the No. 4and No. 5 positions in 2009, respectively, both come in at$1.8 billion and share the No. 4 position. Crown saw anincrease in revenue up from $1.6 billion, while NACCO,which includes North American brands Hyster and Yale,rose from $1.5 billion.The five remaining top 10 lift truck suppliers arealso back, with only a slight variation in the order.Rounding out the top 10 are Mitsubishi CaterpillarForklift, back in No. 6 position; Komatsu, back in theNo. 7 position; Nissan moving up one position to No.8; TCM Corp. also moving up one position to No. 9;and Anhui Forklift Group dropping two positions toNo. 10.Class 3, Lift Code - 2Low Lift Walkie PalletClass 3, Lift Code - 3Tractors (Draw BarPull Under 999 lbs.)Class 3, Lift Code - 4Low Lift Walkie/CenterControlClass 3, Lift Code - 5Reach Type OutriggerClass 3, Lift Code - 6High Lift Straddle35 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


How the suppliers are rankedTo be eligible for <strong>Modern</strong>’s annual Top 20 lift trucksuppliers ranking, companies must manufactureand sell lift trucks in at least one of the IndustrialTruck Association’s (ITA) seven truck classes: electricmotor rider; electric motor hand trucks; internalcombustion engine; pneumatic tire; electric andinternal combustion engine tow tractors; and roughterrain for lift trucks.Rankings are based on worldwide revenue frompowered industrial trucks during each company’smost recent fiscal year. Revenue figures submittedin foreign currency are calculated using the Dec. 31,2010 exchange rate.Changes in the line upAbsent from this year’s list is the French supplierManitou. While the company has had a good year, itscompany spokesperson told <strong>Modern</strong> the company preferredto be removed from the list because it suppliesmostly rough terrain vehicles and doesn’t compete withthe majority of suppliers on this list.New to the list this year is India’s Godrej & BoyceManufacturing. In last year’s story, we suggested keepingan eye on the emerging lift truck market in India. Thisyear it paid off for Godrej & Boyce Manufacturing as thecompany makes its first appearance on <strong>Modern</strong>’s Top 20list in the No. 20 position with $67 million in revenue.The BRIC marketIndia is one of the four countries that comprise what thelift truck industry refers to as BRIC, which is an acronymfor the combined countries of Brazil, Russia, Indiaand China. In 2010, BRIC’s lift truck market was up84% over 2009, and through the first quarter of <strong>2011</strong>, itwas up 44% over 2010. According to Rufener, there arehuge rates of growth in these emerging markets. And, ofthe four BRIC countries, Rufener says, China is dominant,accounting for about 80% of total demand.In the coming months, we’ll keep an eye on the B inBRIC. Brazilian supplier Paletrans came close to makingthis year’s list, with $55 million in revenue.Making the listTo make <strong>Modern</strong>’s Top 20 list this year, suppliers had tomake at least $67 million in revenue in 2010. As a pointof comparison, the cut off was $60 million in 2009 and$98 million in 2008.The top five suppliers combined reported revenue ofmore than $16.6 billion; seven of the top 10 suppliersreported revenue in the billions, as opposed to five inthe billions last year.The combined 2010 revenue for all 20 companies onthe list tops $24.17 billion, compared to $20.17 billionin 2009, $28.99 billion in 2008, and $31.67 billion in2007. While the total isn’t back up to 2007 levels, thenumbers are on the rise.Going forward, going greenAlso on the rise is the continued, ongoing interest in greentechnology, particularly the demand for electrics. “We’reseeing, and will continue to see, an increase in electrics,”says Rufener. “Even with strong economic recovery anddealer growth, electrics are still 60% of the mix and areexpected to exceed that percentage sold in North America.”According to Rufener, we’re seeing more companiesembrace green technology simply for sake of beingable to demonstrate a commitment to environment.“Companies are willing to spend money to go greenand are not be driven solely by the cost-benefit analysis,”Rufener says. “Every application is different. Whilesome prove it to be cost effective, others that aren’t soclear, but companies will go green for sake of environmentalresponsibility.”Class 3, Lift Code - 7High Lift CounterbalancedClass 3, Lift Code - 8Low Lift Walkie/Rider PalletClass 4, Lift Code - 3Fork, Counterbalanced(Cushion Tire)Class 5, Lift Code - 4Fork, Counterbalanced(Pneumatic Tire)mmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 36


Find what you’re looking for.www.MMH.comA true industry resource for materials handling.


MODERN Equipment 101: Lift trucksA primer for warehouse/DC managersLift truck basicsLift trucks have come a long way since their introductionin the materials handling arena in the 1920s. Today, they aresmarter and stronger, and still the indispensable workhorsesin our warehouses and distribution centers.By Lorie King Rogers, Associate EditorWhen lift trucks were introduced nearly 100 years ago, they were simplepieces of motorized equipment designed to move pallet loads frompoint A to point B. Today, sophisticated lift trucks are available in acombination of designs, weight capacities and lifting heights. Thevehicles also come with a variety of enhanced safety features andergonomic designs for operator comfort.mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 39


modern Equipment 101: Lift trucksA primer for warehouse/DC managersPerhaps the only universal featuresof today’s diverse selection of lift trucksare the forks used to lift loads and thetires used to move them.This article looks at the basic designand application of several types of lifttrucks used in manufacturing, warehousingand distribution:Counterbalanced lift trucks• Electric trucks• Internal combustion (IC) trucksNarrow-aisle lift trucks• Reach trucks• Turret trucks• OrderpickersLow lift pallet trucks(or pallet jacks)• Non-powered pallet trucks• Electric-powered pallet trucksCOUNTERBALANCED TRUCKSThe most common type of lift truck,also known as a forklift, is the counterbalanced,sit-down truck. A weightlocated in the rear of one of thesetrucks counterbalances the weight ofthe load, ensuring the truck doesn’t tipforward.A typical counterbalanced lift truck has:• a capacity of 4,000 to 6,500 pounds;• a lifting height of about 16 feet(with 189 inches being the most poplar);• and comes outfitted with lights,backup alarms and other safety features.Counterbalanced trucks are poweredeither by internal combustion(IC) engines or electric motors. Thesplit is about 40% IC and 60% electric,according to Jeff Rufener, president ofthe Industrial Truck Association (ITA,www.indtrk.org) and vice president ofmarketing for Mitsubishi CaterpillarForklift America.Electric counterbalancedlift trucksElectric trucks, which make up about60% of the market, get their power fromlarge, heavy lead-acid batteries, whichprovide much of the counterweight.The ITA classifies electric counterbalancedtrucks as Class 1 lift trucks.Class 1 also includes stand-up counterbalancedtrucks and other electrictrucks built for general use.While the initial investment in anelectric truck is more than IC trucks,electric trucks are less expensive tooperate, due to lower fuel and maintenancecosts.Most of the electric rider trucksshipped in North America are movingmaterial inside the four walls. “Electrictrucks have historically been limitedto indoor applications that are clean,”explains David McNeill, manager ofproduct strategy for electric riders atNACCO <strong>Materials</strong> <strong>Handling</strong> Group.“However, with the launch of severalnew Class 1 products, it is becomingincreasingly possible to use electric riderproducts in some outdoor applications.”Compared to IC trucks, electrictrucks are the preferable indoor choicebecause they are quiet, produce noemissions and can usually run a fulleight-hour shift on one battery charge.Removing, recharging and reloadingbatteries—which typically weigharound 3,000 pounds—can be cumbersomeand time consuming and usuallyrequires a dedicated space for batteryhandling. Newer fast charging technologies,however, are changing thatparadigm.One new charging technology iscalled opportunity charging. “This basicallymeans that rather than waitinguntil the end of the shift to rechargethe battery, it happens throughout theday,” explains Niels Ostergaard, CSSRtraining manager for Toyota Material<strong>Handling</strong> U.S.A. “When the truck isparked for a break, the operator takesthe opportunity to plug it in at chargingstations located throughout the facility.”Fast-charging is another enhancedcharging technology. According toOstergaard, advances in battery technologyand charging systems make itpossible to cut charging time by asmuch as 50%.Internal combustioncounterbalanced lift trucksIC engine trucks run on a variety offuels, including gasoline, diesel, liquidpropane gas (LPG) and compressednatural gas (CNG). The larger lifttrucks, which are used outdoors, are40 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


typically gasoline- or diesel-poweredand have pneumatic tires that makethem suitable for rough terrain andsteep inclines as opposed to cushiontires, which are made of solid rubberand are best for indoor applications onsmooth surfaces.LPG is the most common fuel forindoor trucks. With more than 600,000propane-fueled lift trucks in operationtoday in warehouses and DCs,these units offer a number of benefits.For example, propane-fueledlift trucks maintain consistent, 100%power throughout operation and havefaster ground speeds than other powersources. They can also run 24 hoursa day, with longer run times betweenrefueling than lift trucks fueled byother power sources, according to BrianFeehan, vice president of PropaneEducation & Research Council (PERC,www. propanecouncil.org).One important consideration whenchoosing a propane-fueled lift truckis where the refueling area will belocated. Propane cylinders require littlespace and can be kept in a storage areainside or outside of a facility. And whileit takes little time to switch out a propanecylinder, it does require operatortraining and knowledge of safety standardslike the Occupational Health andSafety Administration (OSHA, www.osha.gov) Standard 1910.178.1, saysFeehan.Compared to electric trucks, ICtrucks are quicker and easier to refuel,but they can be noisy and produceair-polluting emissions. The federalEnvironmental Protection Agency(EPA, www.epa.gov) and the CaliforniaAir Resources Board (www.arb.ca.gov)have set standards that limit emissions.The Industrial Truck StandardsDevelopment Foundation (ITSDF,www.itsdf.org) also offers a number oflift truck standards on their Web sitefree of charge.The ITA classifies internal combustioncounterbalanced lift trucks withcushion tires as Class 4 trucks andthose with pneumatic tires as Class 5.NARROW-AISLE LIFT TRUCKSThe ITA’s Class 2 includes a variety ofelectric lift trucks built for use in narrowaisles.At 12 feet wide, standard storageaisles allow a counterbalanced lifttruck to turn in the aisle and put awaya load. Narrow aisles are typically only8 feet wide—and very narrow aislesare only 5.5 to 6 feet wide—requiringspecialized lift trucks that can put awayloads without turning or that are smallenough to make tight turns.Three of the most common narrowaisletrucks are reach trucks, turrettrucks and orderpickers.Narrow-aisle reach trucksReach trucks are considered the originalnarrow-aisle lift truck. These trucksare small enough to turn in narrowaisles because they don’t need a largecounterweight. Instead, outrigger armsextend in front of the trucks to providestability. The outrigger arms, however,can prevent the trucks, depending onstorage configuration, from gettingclose enough to the storage rack todeposit and retrieve loads. To overcomethis, a reach truck is designed with atelescoping mechanism—called a pantograph—thatallows the forks to reachinto storage locations.The best environment for a narrowaislelift truck is one that is clean, hasgood lighting, an ample turning aisle,good traffic flow and well-maintainedfloors.Turret trucksThe lift truck often chosen for work invery narrow aisles is the turret truck.These trucks have pivoting forks thatturn 90 degrees on either side and traversefrom side to side.To put away a load, an operatordrives down the aisle with the load facingforward and then stops at the designatedstorage location. The forks pivotto the appropriate side and lift the loadto the desired height. Then the forkstraverse to their full extension, depositingthe load. The forks return to theiroriginal position before forward travelresumes.Turret trucks can be completelyoperator guided or can run on a wireguidance system—an attractive optionin very narrow aisles. In man-up trucks,the operator compartment rises withmmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 41


MODERN Equipment 101: Lift trucksA primer for warehouse/DC managersthe load. In man-down trucks, operatorsremain at floor level.A good rule of thumb when choosinga turret truck is to measure speedsat different elevations and comparemast sway.OrderpickersWhile reach trucks and turret trucksare used for storing and retrieving palletloads, orderpickers are used forhandling individual items or cases. Anorderpicker, also known as a stockpickeror order selector, lifts the operator ona platform along with the forks. Theoperator picks items from bulk storagelocations and places them directly ontoa pallet on the forks of the truck.Orderpickers can safely move forwardwhile in an elevated position. Theycan be completely operator-guided orcan run on wire guidance systems.LOW LIFT PALLET TRUCKSThe simplest and least expensive lifttrucks are non-powered pallet trucks,also known as hand pallet trucks orhand pallet jacks. Powered and nonpoweredpallet trucks are included inITA’s Class 3.Non-powered pallet trucksNon-powered pallet trucks use a liftingdevice—usually hydraulic—to raisepallets just a few inches off the floor.Operators then grab the truck’s handleand pull the load behind them.Electric-powered pallet trucksElectric-powered pallet trucks are alsoavailable. These trucks are easy tomaneuver, relatively inexpensive, andavailable with forks long enough toaccommodate two or three pallet loads.Powered pallet trucks come in twoversions, known as “walkies” and “riders.”The walkie is designed for theoperator to walk along with the truck,while the rider has a platform on whichthe operator can stand. These trucksare often used in warehouses for orderpicking, with operators stacking cartonson pallets as they work their way downthe picking aisles.The right fitOne of the most important factorsassociated with any lift truck is usingthe right sized unit for the right application.The application should alwaysdrive the product selection, saysAlternative energy sourcesWho makes whatFor a list of lift truck suppliersand the types of trucks theymanufacture, see p. 34.NACCO’s McNeill.As the economy has become morecomplex and competitive, customers arelooking for efficiencies to lower operatingcosts while increasing productivity.Lift trucks can play a role in accomplishingthose goals, says Ostergaard. “Intoday’s market, it’s critical to ensure thatyou’re using the proper sized lift for theapplication. The wrong sized lift truckcan have a dramatic negative effect onproductivity, profitability and the bottomline. It’s like buying a new pair of shoes.They may be beautiful and priced right,but if the size is wrong, you won’t be ableto walk.” Fuel cell-powered lift trucks are possible,but not yet profitable. Whilefuel cell technology is a promising,emerging technology, it is still dependenton government funding, accordingto Jeff Rufener, president of theIndustrial Truck Association (ITA,www.indtrk.org) and vice president ofmarketing for Mitsubishi CaterpillarForklift America (MCFA, www.mcfa.com).How long that dependent relationshipwill last is still an open question.Government support is key tokeeping progress moving forward,but it’s unpredictable. Rufener says,“The technology has been provenviable, but the economics of thetechnology are not clear. The fuelinfrastructure–access to hydrogenand the storage and delivery system–just isn’t there yet.”Lithium ion batteries are anotheremerging technology to keep an eyeon, but right now Rufener says, thecost raises eyebrows.42 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURINGmmh.comThe Apparel Group:Dressed for distributionsuccess Page 18Kirk Longo, vice presidentof supply chain, TheApparel GroupSPECIAL REPORTTop 20 SCMproviders 26EQUIPMENT REPORTGreen unitizingpractices 30INFORMATION MANAGEMENTFive trends in WMS 34®July 2010Develop greaterbrand awareness andshowcase your featurededitorial from thisindustry-respectedpublication.Special corporateprofile issuePlace your press directly in thehands of your customers andprospects with custom reprints from<strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> magazine.Event CollateralMedia KitsDirect MailOnline MarketingRecruiting Packages800.290.5460 x136 I mmh@theYGSgroup.comPresentationsThe YGS Group is the authorized provider of customreprint products from <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> magazine.


modern information management15ways thelift truck isevolvingToday’s lift trucks offer more in the way oftechnology, power and performance than everbefore. Here’s a look at the latest innovationsavailable in today’s trucks.By Bob Trebilcock, Executive EditorRemember that old commercial: Thisis not your father’s Oldsmobile? Thesame can be said for lift trucks. If youhaven’t replaced your fleet of lift trucksin recent years—and, thanks to therecession, many <strong>Modern</strong> readers parkedsome of their fleet during 2009—youmay be surprised by the technologybeing built into today’s offerings. Thedevelopments include everything fromergonomic improvements for operatorcomfort to fully automated lift trucksthat operate just like an automaticguided vehicle (AGV).But, not all of the changes are as revolutionaryas converting a lift truck into anAGV. “We are an evolutionary industry,not a revolutionary industry,” says JeffBowles, product line manager, MitsubishiCaterpillar Forklift America (MCFA).If you think about it, that approachmakes sense. New lift trucks have togo right to work in existing applicationswithout disrupting operations. What’smore, the basic lift truck remains thebackbone of most warehouses, DCsand manufacturing plants. Those evolutionarychanges are resulting in trucksthat are more productive, smarter andreliable than ever before.<strong>Modern</strong> recently spoke to 10 of theleading lift truck manufacturers inNorth America to learn about the 15most important advancements foundon the next generation of lift trucks.Here’s what we learned.44 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


1Automating lift trucks. Automationis coming to lift trucks as Crown,MCFA, Toyota, Nissan and Raymond3ready lift trucks that can operate asautomatic guided vehicles. Raymond,for instance, has plans to introduce anautomated lift truck incorporating acamera-based navigation system fromSeegrid in early 2012. The justificationfor automation is simple: Labor isexpensive. “If you look at the five-yeareconomic life of a lift truck, labor represents70% to 75% of the total investment,”says Frank Devlin, manager ofadvanced technologies at Raymond.“If you can maximize your labor force,there is a tremendous need for this.”24Bringing RFID to lift trucks. Inaddition to automated lift trucks,manufacturers are exploring semiautomatedsolutions. Through its relationshipwith Jungheinrich, MCFAis bringing RFID- and transponderbasedtechnologies from Europe to verynarrow aisle lift trucks in the NorthAmerican market. One solution relieson a warehouse navigation system thatknows where the truck is located basedon encoders and transponders in thefloor and RFID tags at the pick andpallet locations. Once order picks areloaded into the system, the truck calculatesthe most efficient way to pick theorders; it will also calculate the lift anddrive speeds that are most productivefor the process.“The system will automatically driveand lift the truck in an automated fashionfrom pick location to pick locationwithout going to a completely automatedtruck,” says Bowles. MCFA isalso installing transponders and sensorson the truck for safer operations. Onman-up trucks, for instance, the systemwill monitor what’s in front of thetruck at the ground level. “It’ll slow thetruck until the obstruction is movedwhen the operator has limited visibility,”says Bowles.Remote-controlled trucks. Crownis also developing semi-automatedsolutions that serve the gap betweenconventional lift trucks and AGVs:a remote-controlled vehicle for casepicking. An order selector can drivethe truck into a pick zone; while picking,the operator moves the truck fromone pick location to the next using aremote control device. That saves thetime usually spent getting on and offthe truck between picks. “We are tryingto bring functionality to the truckthat adds value,” says Tim Quellhorst,senior vice president of Crown. “Thisis a good example of a solution that candrive labor productivity in the less thanfull automation area of operation.”Lift truck, phone home. Lift trucksare getting smarter, thanks to telematics—anindustry term for the convergenceof telecommunications and datacollection technologies such as sensorsand RFID technology. Telematics allowthe lift truck to collect data about theoperation of the truck and the performanceof the operator and then communicatethat information to a systemof record. The onboard computer on aRaymond lift truck, for instance, hasthe ability to send fault codes and theserial number of a truck by e-mail to atechnician’s smart phone or computer.“That allows a technician to diagnosea truck and bring the tools, parts andcomponents they need for the job,”says Devlin.5Integrating the lift truck with theWMS. Most of the information beingcollected by telematics systems todayis being used to support maintenanceand fleet management initiatives. Thenext step, says Jonathan Dawley, vicemmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 45


president of marketing for NACCO<strong>Materials</strong> <strong>Handling</strong> Group (NMHG),is to integrate telematics with a warehousemanagement system (WMS).That integration would allow lift truckdata to become part of the workflowof a facility. “Using data from the lifttruck to improve the productivity oflabor could be more important thanrunning your lift truck 1 mph faster,”Dawley says.6The ergonomic lift truck. Ergonomicsand worker comfort have long been apriority in Europe, where distributorsand manufacturers have a longer termrelationship with their employees. Thatthinking is beginning to permeate U.S.enterprises, especially those with aglobal footprint. That, in turn, is drivingthe demand for more European styletrucks here in the United States. “Wesee some of our U.S. and Canadiancustomers creating a different type ofenvironment for their employees in thewarehouse,” says NMHG’s Dawley.“They want a smarter, more productiveoperator, not a stronger operator.” Hebelieves the attention to ergonomicsnot only improves productivity, it helpsretain skilled employees.7Fingertip controls. Multi-functionalcontrols that can be controlled by anoperator’s fingertips are one example ofimproved ergonomics. With one control,an operator can work the lift of theforks, the tilt angle and the side shifter.“Fingertip controls were introducedin Europe,” says Steve Cianci, directorof marketing and product managementfor Nissan Forklift Corporationof North America. “While they’re notpopular yet in the United States, we’reseeing increased interest because theyprovide a more ergonomic experiencefor the operator.”8Smarter lift trucks. What mightthe lift truck of the future look like?According to Lyndle McCurley, salesand marketing manager for DoosanIndustrial Vehicles America, it’s a truckthat’s smarter, more ergonomic and flexible.Last month, Doosan previewed anelectric concept vehicle at the BritishOpen. The glass on the truck’s cab isclear when operating indoors and tintsto keep out sunshine and heat whenit’s operating outside. As the forks areraised, the cabin rises slightly and tiltsbackward so that the operator can lookup at higher elevations without straininghis neck. Heads up displays includegraphics of the height of the forks, theweight of the load and the tilt angle.Finally, the truck can change its centerof gravity and wheel base—automaticallyelongating or retracting the lengthof the wheelbase—depending on thesize of the load and the operating environment.“Instead of a 5,000-poundtruck, we’re developing multi-capacitytrucks that can adapt to the operatingrequirements,” McCurley says.9Inhibitor functions. Inhibitors aredesigned to predict the unsafe operationof the truck for the operator, saysCianci. These functions automaticallyreduce the forward and reverse travelspeed of the truck at different heightsand automatically control tilt angles.10 moving from preventative maintenanceGet on the bus. The lift truck industry,like other mechanical solutions, istoward predictive maintenance. “We’renot there yet,” says Ed Campbell, salesmanager for the materials handlinggroup at Landoll Corp. “But with theCAN BUS system, we get two-waycommunication with the components.That lets us know whether we’re operatinga higher temperature, whichallows us to react to something beforeit fails.”11Hydrostatic drives. “The vast majorityof the equipment in use today46 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


modern information managementis powered conventionally with ICengines or battery power,” says MarkRoessler, general product managerfor Linde Material <strong>Handling</strong> NorthAmerica. “Because of that, our focushas been on optimizing those designsfor the end user.” At Linde, that translatesinto hydrostatic drives that use13 15oil flow and pressure to accelerate and it their way. Toyota Material <strong>Handling</strong>decelerate the truck in either direction.“With hydrostatic drives, thereare no friction brakes, no mechanicaltransmissions, no drive shafts and no Ujoints,” says Roessler. “That allows youto eliminate the wear and tear in thedrive system.”12CompaniesGetting narrower in narrow aisle.As warehouses strive to get more storagein the same amount of space, narrowand very narrow aisle lift trucksare key. “When we first started in thisbusiness, our trucks operated in a7-foot aisle,” says Landoll’s Campbell.“Today, we’re operating in less than 6feet in articulating trucks.” Part of thatis attributed to redesigning the articulationassembly of the trucks so they aremore compact and thinner to work ina narrower aisle. Another is to design afront end that can rotate 200 degreesinstead of 180 degrees.“As you’re pulling the forks out, theystart to turn. That allows you to keepthe forks straight until you get them14out of the pallet, which makes it easierto stack in a narrow aisle,” Campbellexplains. Since narrow aisle trucksare often working in high elevations,Landoll has added a low-cost camerasystem to provide visibility above 25feet as well as software that can detectand display the height elevations inevery row in a warehouse.Integrated scales. Burger King createda business out of letting customers haveU.S.A. (TMHU) sees a similar interestin customization among lift truck“Forty percent of our orders are customized bythe customer and many of those innovationsturn into options that are later integrated intooptions on the trucks.”—Cesar Jimenez, national product planning manager,Toyota Material <strong>Handling</strong> U.S.A.users. “Forty percent of our orders arecustomized by the customer and manyof those innovations turn into optionsthat are later integrated into options onthe trucks,” says Cesar Jimenez, nationalproduct planning manager for TMHU.The recently introduced integrated forkliftscale is an example of a feature thatwas developed for a customer and isnow a standard option on Toyota trucks.The scale, which is accurate to withinhalf a pound and is legal for trade,allows an end user to weigh and capturethe weight of a load while lifting a palletand loading it on a truck. In its currentconfiguration, the system can storeinformation about 350 loads that canbe downloaded to an enterprise system.“We have the ability to add Bluetoothand Wi-Fi to automatically transmit thedata,” Jimenez says.Lithium ion batteries. Earlier thissummer at CeMAT, Jungheinrichintroduced a walkie for the Europeanmarket powered by a small lithium ionbattery the size of a brief case that canbe replaced by the operator with nospecial tools. “The size of the batteryresults in a very maneuverable truck,”says Bowles. “But, as with most newtechnologies, cost is the issue and atpresent, the cost per kilowatt hour isgreater than a lead acid battery.”A hybrid lift truck. In Japan, Toyotahas introduced a true hybrid dieseltruck in an 8,000-pound capacity truck.The truck operates on electric powerfor applications like travel, but automaticallyswitches to diesel when extrapower is required for an application,just like the consumer car Prius. And,like a Prius, the batteries are rechargedwhen the truck is under diesel power.“Because you’re not consuming electricityfrom the grid, the design hasresulted in a 50% reduction in fuel consumptionand emissions,” says Jimenez.Toyota plans to introduce a propanebasedindoor cushion tire hybrid truckin North America. “Propane is the No. 1selling fuel for us in the United States,”says Jimenez. “That’s what we’re pushingour parent company to design.” Mmentionedin this articleCrown, www.crown.comDoosan Industrial Vehicles America,www.doosanlift.comJungheinrich, www.jungheinrich-lift.com/_jh/index.cfmLandoll Corporation, www.landoll.com/mhpLinde Material <strong>Handling</strong> NorthAmerica, www.lmhna.comMitsubishi Caterpillar ForkliftAmerica, MCFA, www.mcfa.comNACCO <strong>Materials</strong> <strong>Handling</strong> Group,www.nmhg.comNissan Forklift Corporation NorthAmerica, www.nissanforklift.comRaymond, www.raymondcorp.comToyota Material <strong>Handling</strong> USA,www.toyotaforklift.commmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 47


modern productivity solutionSlow picking and errorsare just a memoryA crafty slotting solution helps Creative Memories achieve more than99.9% shipping accuracy and improve picking speed.By Lorie King Rogers, Associate EditorCreative Memories, based in St. Cloud, Minn.,is a leader in the memory celebration industry,selling premium quality photo albums, scrapbookingsupplies, digital photo books and software.The company markets its products at in-homeparties through more than 40,000 independentsales consultants worldwide. Submitted by phone,fax or online, a consultant’s typical order containsabout 10 to 20 different SKUs, which makes fora steady, high-volume flow of product through thefacility.<strong>Handling</strong> the demand is no problem. Ordersflow quickly and systematically through each partof Creative Memories’ technology infrastructurethanks to a fully integrated software solution(HighJump, www.highjump.com) that includes aslotting tool.Overall inventory management is critical, so thecompany added the slotting solution to its systemto optimize the use of warehouse space and re-slotinventory once each month. “It’s important thatfast-moving items are in the ‘golden zone’—the easiestlocation for workers to reach—to promote bothefficiency and safety,” says Dan Perlinger, CreativeMemories’ distribution team lead.The system also manages the process ofcycle counting to keep inventory accuracy high.“Depending on the item, it is counted either onceper month, once per quarter, or once every sixmonths,” Perlinger says. “We never do physical48 <strong>August</strong> 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


modern productivity solutioninventories. Our auditors have confidence in thesystem.”Creative Memories has seen measurable benefitsfrom re-slotting its warehouse monthly. Beforethe slotting solution was in place, the companypicked between 45,000 and 50,000 lines per day.Now, it consistently picks 55,000 lines per day andachieves peaks over 140,000 lines per day.In addition, the company’s fulfillment accuracyrate consistently exceeds 99.95%, which is instrumentalin helping the sales consultants grow theirindependent businesses with satisfied customers.Slotting reaps abumper crop of benEfitsWarehouse management solution uses several slotting principles tocontrol accuracy, production and overall pallet quality.Nature’s Best is a privately helddistributor of natural and organicgrocery products that suppliesretailers in 11 western states. Butthe company’s passion for its productand growing success caused newchallenges to crop up. For example,it had outgrown its distribution center,and distribution operations werereliant on an inadequate managementsolution.While building a new 410,000-square-foot DC in Chino, Calif., totackle its space issue, the companylooked a supply chain solution to optimizeoperations, increase efficiencyand create a distribution model thatcould be replicated in other regions.They chose a warehouse managementsolution (Manhattan Associates, www.manh.com) that offered a low cost of ownership andrequired minimal customization. Another beneficialcomponent is a slotting feature used to managethe company’s 18,500 SKUs.Prior to implementation, product was storedrandomly within the mechanized facility that nolonger fit the company’s current business model orproduct mix. Now, fast moving SKUs (20%) andslow moving SKUs (80%) are slotted by movement(or hits), density class and volume. Product weightis also considered from a placement perspectivewithin the pick aisles.Within the new configuration, the company canbetter control accuracy, production and overall palletquality. Additionally, product damage has beenreduced by 30%. And, as expected, says Jim Beck,Nature’s Best president and CEO, selection productivityhas increased by as much as 10%. Safety,quality matrices and customer service, includingshortages and mispicks, have also improved, Beckreports.“Slotting has improved so much of our alreadyimproved operations,” says Beck. And, when lookingat the overall warehouse management solution,he says, “It all paid off extremely quickly. We startedseeing improvement four months after implementation.It usually takes three or four times thatlong—and I have yet to see any limits to the volumewe can process.” Mmmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / <strong>August</strong> 2 0 1 1 49


warehouseS & Distribution CentersA special supplement toWorkforcemetamorphosisSuccessful labor management goes beyond the installation of software.Here’s a look at the implementation process and how one major retaileruses its program as a tool for continuous process improvements—withmulti-layered benefits.BY maida napolitano, contributing editorLabor cost is almost always the highest expense itemin a distribution center’s budget. To control andmanage this cost, visionary managers often relyon comprehensive labor management programsthat promote and measure efficient methods forperforming tasks. To achieve this goal, managers tie varioussoftware tools, such as labor management systems (LMS),together with strategies to monitor, report and reward actualperformance against established expectations.These programs certainly aren’t new, and their abilityto increase productivity by providing continuous feedbackon worker performance is well documented. Don Cook,president of New Jersey-based labor management consultingfirm Cook & Associates, sums it up this way: “With agood labor management program, organizations can reducecosts and ensure that merchandise is processed correctly,all while improving processing timeliness.”According to Cook, users who are able to tie a programtogether with the appropriate measurement softwaretypically report a 20% increase in productivity along withincreases in work quality and reductions in service times.Cook adds that many organizations achieve payback ontheir investment within nine to 16 months.Tom Kozenski, vice president of product strategy forRedPrairie—a provider of both warehouse managementsystems (WMS) and LMS—also points to a big modelingadvantage, or the ability to test scenarios on the computerbefore trying it for real on the warehouse floor. “Our softwarecan do ‘what-if’ analyses of an operation on the computerand anticipate results, rather than going on the floorand trying to do ‘what-ifs’ on the fly with 100 people.”For example, what if you consider going from pickingwith paper pick lists to picking with radio frequency (RF)terminals, or from RF to voice-directed systems? You canmodel each alternative on your LMS and predict which onedelivers the most productivity improvements before purchasinga single piece of equipment.Other labor management solutions, such as those fromKronos, have also automated workforce-related processessuch as hiring, time and attendance, and employee scheduling.Malysa O’Connor, director of Kronos’ logistics practicegroup, says that by automating, you gain real-time visibilityinto critical labor data for accurate cost accounting by customer,by order or by task.“When you have a comprehensive system that integratesworkforce business processes, you’re poised for competitivedifferentiation through the optimization of your laborresources,” says O’Connor.Even more benefits are reported when the program incorporatesa gain-sharing, incentive-paying component. “Goodworkers want what they do to be acknowledged,” says MattKulp, director of distribution and fulfillment projects forSt. Onge Company, a supply chain consulting company.“When incentive programs are done right, good workers aregoing to want to stay onboard.”If you’re contemplating such a program for your organization,your timing couldn’t be better. The real-time interfaceof LMS with more robust WMS is giving these programsa new edge. In addition, better software, more widespreaduse of RF technology, and new warehouse mapping capabilitieshave reduced much of the manual effort involvedin the work measurement component of the program, alsoincreasing its accuracy.Over the next few pages, we’ll look at labor managementprograms and how they span well beyond the mere installationof software. We’ll also look at what’s involved during implementationand how a leading bridal products retailer is using labormanagement as a tool for continuous process improvements.50S A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


A special supplement to modern materials handlingWarehouses & Distribution CentersDaniel Guidera5 things to knowGetting the most out of your workforce depends on a soundand effective labor management program. Here are five crucialpoints to keep in mind when implementing one.First: Strategy must be defined. Why are you doingit? Do you want to set standards for yearly budgetary planningor implement an employee measurement or incentivepay system where you’re rewarding people at the individuallevel? “These two extremes require different levels of software,different levels of sophistication, ongoing maintenance,and a lot of effort and cost to implement,” says St.Onge’s Kulp. “You need to understand what you’re trying toget out of it first so you can pick the right software and pickthe proper approach.”Second: A labor management program is morethan just the installation of software. “It’s a total culturalchange,” explains Cook. “It requires thorough knowledgeof your operations, accurate work measurement, andan effective structure of reporting that promotes feedback.”In fact, the actual software installation itself can take 30minutes, but many other steps must also be accomplished.Critical, labor-intensive tasks in the DC must be identifiedand the length of time it takes to accomplish these tasks isrecorded by the actual timing of employees as they performeach task, or by using a database of pre-determined timestandards. Once standards are established and the system isonline, managers must be trained to coach poor performersand resolve barriers to productivity.An incentive payment component often takes the programto the next level by rewarding good performers aspart of a management plan to share the savings gained.“Incentive policies can be powerful tools because they putemployees in control of their own destinies,” says Kronos’O’Connor. “Management needs to clearly communicateexpectations and put in place a consistent system thatemployees can trust is fair.”Third: It’s tough to manage without software. “Youcould get by for a while without software in a very smallorganization, say 50 employees or less,” says Cook. “However,you may have to employ more managers than necessaryto try to keep track of what’s going on. In this dayand age, as DCs and fulfillment centers become larger andmore complex, you generally need the software becauseof the enormity of the data that you’ll be collecting andmonitoring.”Fourth: Expect cultural challenges. In cases of unioninvolvement, it might be wise to get them involved fromthe very beginning, says Lisle Holgate, product marketingmanager for RedPrairie’s workforce management platform.“Unions tend to support standardization when its members’performance is based on a reasonable time to do the taskin a safe and efficient manner.” Kozenski adds that someunions have engineers who will validate these standards aspart of this process.Fifth: Don’t install a program and proclaim you’redone. “You’re never done,” says Kozenski. “You’re always52S A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


Warehouse Labels & SignsWAREHOUSE SIGNSSolutions for all your bulk storage identificationneeds for indoor or outdoor applications.• Long-range retro reflective• Flat, bent or two-sided Z shapedsign fabrication• Dock door• Aisle• BullsEye oval floor platesRACK LABELSDurable polyester rack labels help insureconsistent bin location year after year. We produceand install over 5 million rack labels annually.• Horizontal and vertical upright• Magnetic• Protective laminates standard• Special adhesives — cover up andfreezer applications• Color coding for tier identification anddirectional arrow graphic imagesPREPRINTED LPN LABELSPreprinted barcode pallet id labels save significanttime and money compared to print-on-demandthermal transfer.• Run and hold inventory programs• Same day shipping• 2-D and linear barcodes• Corner-wrapNATIONALINSTALLATION SERVICESThe most comprehensive installation servicesin the industry. With over 40 years ofcombined experience, our installation teamprovides nationwide coverage that deliversgreat value, guaranteed quality and on-timeengineered solutions.• Customized installation solutions• Data file manipulation• Fully bonded and insuredFREE white paperon the benefits of preprintedlabels VS. print-on-demandCALL TODAY!FREE samples available.Channel partner inquiries welcome.salesmmh@idlabelinc.comToll-free: 800.541.8506 x100www.idlabelinc.comPositive feedback...Every timeID LABEL INC.425 Park AvenueLake Villa, Illinois 60046


A special supplement to modern materials handlingWarehouses & Distribution Centerspeeling the onion. You’re always lookingfor better ways to improve youroperation.” The program must be flexibleenough to quickly change as youchange your methods and procedures.As a result, it’s imperative to keepmaintenance costs in mind going forward.Depending on the number ofemployees and the number of facilities,one or an entire staff of engineersmay be needed.With these key points in mind, let’ssee how David’s Bridal, the biggestU.S. retailer of “everything-weddings,”implemented its labor managementprogram.Measuring David’sBridalPlanning a wedding? Look no furtherthan David’s Bridal, the country’s largestbridal retailer, offering the convenienceof one-stop shopping forwedding-related products and servicesfrom its 300 brick-and-mortar storesand its Web site.However, Tony Coccerino, vicepresident of logistics and distribution,will be the first to tell you that this successwould not be possible without theretailer keeping a close eye on laborcosts within their two DCs in easternPennsylvania—a 174,000-square-footfacility in Conshohocken that employs35 to 45 hourly associates and a newer,more automated 230,000-square-footDC in Bristol that employs 75 to 85hourly associates.Back in 2001, with only the ConshohockenDC up and running,Coccerino, says that his team wasexperiencing difficulties with managingthe growing pool of hourlyassociates. “There was no means oftracking what each associate wasdoing,” says Coccerino, “and wefelt that we were bringing in morepeople and more temps withoutever getting ahead.”Quickly digesting the problem,management decided to implementlabor standards to at least hold theassociates accountable for what theydo and how much they do. Along withsome due diligence, and after narrowingthe field to two potential LMS providers,the retailer decided on Cook& Associates’ Productivity EvaluationProgram, also known as PEP.In May 2001, the PEP team starteda multi-phased approach with David’sBridal management group, bringingthem up to speed on the steps togenerate, use, and analyze reportsthat provide constructive feedbackto associates. At the same time, theyalso started the month-long processof identifying and measuring differenttasks throughout the DC, using timestudies and time logs that employeeswere trained to fill in for certain specialprojects.Once the measures and standardswere established, the team then hadto make sure that PEP could interfaceseamlessly with the retailer’s WMS(Manhattan Associates) and Kronos’Time and Attendance System. TheWMS details all the work and criticaldata—such as the type of task performed,the number of units picket, orthe number of orders completed—areextracted and used as input into PEP.The Kronos system automatically providesPEP with the exact number ofhours that the associate was paid towork for a given shift.The teams then rolled out the systemand introduced it to the hourlyassociates in September of 2001. Afew more weeks of fine-tuning ensuredthat the standards would be correct andfair before managers started reviewingemployees—identifying who was makingthe grade and who was going toneed some coaching. A year later, managementdecided to share productivitygains by implementing a cash-backincentive program that included everyonefrom hourly associates to janitors tosupervisors to managers.It’s been 10 years since the firstinstallation, and according to Coccerino,the benefits have been significant.“Just by introducing standards wefelt that we were going to get a decentproductivity improvement of 7%. Wewound up getting 10% to 12%,” saysCoccerino. After adding the incentiveprogram, productivity increased another12%. Through the program, DC managersnow know how long it takes to do ajob, allowing them to confidently planhow much staff they need to completefuture work.Coccerino admits that the associatesweren’t so sure at first about thechanges, thinking they were beingmicro-managed. “But they cameonboard once they started seeing anextra $50 or $100 in their paychecksevery other week—just by doing theirjob.” MMaida Napolitano is a contributingeditor to <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong>Components of a complete labor management msystem (LMS)Time andattendancenceResourceplanning allocationPerformancemanagementmentIncentivesreward disciplineLaboroptimizationSlotting andsimulation• Punch capture• Time-offmanagementnt• Payroll calculationculation• Exception reporting• Alerts• Estimate resourceneeds• Time to completeactivities• Balance resourcesacross operations• Measure performanceagainststandard• Provide real-timereports• Track qualityand safety• Track activity-tybasedcostss• Calculate incentives• Integrate withpayroll systems• Observationmanagementnt• Report cards• ROI-based slotting• Simulation• Process modeling• Establish standards• Quality managementagement• Greenfield• Facility analysis• ContinuousimprovementSource: RedPrairie54S A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


SMASHINGLYDURABLENEWYellow Jacket is the new portable Big Ass Fan.It takes abuse and stays in use*, and becauseit’s a Big Ass Fan, it has everything you wouldexpect, and more…• Extraordinarily Durable Construction• Amazingly Quiet Operation• ELEVEN Adjustable Speeds• Multiple Mounting Options• Enormous Airflow Coverage Area• Superior Maneuverability• Up to 50% Less Energy UseYellow Jacket is so durable it will never need to be replaced.And we aren’t just saying that. We guarantee it for life.****Limited lifetime warranty;certain exclusions applyLearn about the many benefi ts of Yellow Jacket.WWW.BIGASSFANS.COM | (877) BIG FANS* Scan to see documented attemptsat Yellow Jacket destruction.Or go to www.canyoudestroyit.comCovered by one or more of the following U.S. Patents: 6,244,821; 6,589,016; 6,817,835; 6,939,108; 7,252,478; 7,284,960; D587,799; D607,988; 7,654,798 and other patents pending.©<strong>2011</strong> Delta T Corporation dba the Big Ass Fan Company. All rights reserved.


FOCUS ON Packaging equipmentLow-level palletizerdelivers fast palletstackingThe 72AE palletizer combinesthe accessibility of a floor-levelunit with speeds associatedwith high-level machines.By incorporating an extendedaccumulation table, the palletizerenables continuouslayer forming during layertransfer and stacking, increasingvolume up to 35 unitsper minute. Features include energy-efficient electric motors as well as programmablelayer patterns and pallet configurations. It can palletize cases, trays, bags or totes withautomatic changeover on a touchscreen operator panel. For flexibility as new pallet,layer, and product configurations are added or modified, an intelligent control lets youindependently adjust all of the operating parameters. A-B-C Packaging Machine, 800-237-5975, www.abcpackaging.com.Stretch hood machinesecures palletized goodswith filmFor packaging palletized goods, thestretch hood machine features controltechnology that recognizes various stackheights for flexible, automatic adjustmentby the machine. An ultrasonic sensordetermines the required film length.Film is then cut and sealed along the cutedge, forming a hood that is crimped,pulled over the stack and tucked underneaththe pallet to fit snugly. Quick andefficient, the packaging process protectsgoods from the environment, water, dustand insects, while palletized goods areclearly visible through the transparentfilm. Beumer, 732-893-2800,www.beumer.com.Now from Aigner: Slip•Strip , theMost Versatile Label-HoldingSystem.Ideal for all rack and shelvingapplications, self-adhesiveSlip•Strip adheres to any cleansurface.Slip•Strip features a uniquebottom-loading design. Barcodes, price displays, signs andmessages slip easily through theopen edge and are held snuglyin place. Repeated label changingwithout messy adhesivebuildup is simple! Slip•Strip hasa clear face for easy reading orscanning. The white backgroundprovides a neat, clean appearance.It can be used in its full36" or 48" length or easilyscissor-cut to size. Six standardwidths accommodate labels from3/4" to 3" high. Package quantitiesare 6 or 24. Magnetic orhook/loop backings, color orcustom-imprinted backgroundsare optional. For samples andmore information, callfor our catalog andnearest distributor.Aigner Index, Inc.218 MacArthur AvenueNew Windsor, New York 12553Tel: 1.800.242.3919 Fax: 845.562.2638info@aignerindex.com www.aignerindex.comFormerly CEL-U-DEX Corporation56 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


Automate your load transferCapable of transferring products packaged in cases, barrels,drums, bags and pails from one pallet type to another, the LoadTransfer Station with Pallet Cart (LTS-C) allows a lift truck driverto place the “go to” pallet onto a pallet cart for automatic processing.The system works with standard size plastic and woodpallets used in receiving and shipping applications. The systemreduces warehouse worker injuries, streamlines plant andwarehouse operations, improves plant and process cleanliness,and reduces handling costs. It may be used as a stand-alonemachine or can be fully integratedwith automaticpallet washing and/or stretch wrapping.Columbia Machine,360-694-1501,www.palletizing.com,www.loadtransfer.net.Affordable picture frame palletreusable, recyclableCombining strength and economy in lightweight one-piececonstruction, the 48 x 40-inch RACX pallet is fabricated ofrecycled HDPE plastics for repeated use. The pallet featuresa picture frame bottom and runners on all four sidesfor added stability, making it ideal for use with warehouseracking systems, stack loading, closed-loop transport, floorstorage and automated materials handling applications.Engineered so that the bottom pallet can handle the fullstatic load when loaded pallets are stacked two or morehigh, the pallet offers unsupported rack capacities up to2,200 pounds. Static load capacities are rated to 25,000pounds; dynamic loads to 5,000 pounds. Decade Products,616-975-4965, www.decadeproducts.com.SustainableDesign-Build SolutionsFLEXIBLE FINANCE SOLUTIONSON FABRIC STRUCTURES *TERMS UP TO 10 YEARS RATES AS LOW AS 4.99%AS LITTLE AS 10% DOWN *Subject to credit approval.fabric structuresBuildingsavailable up to300' wide.Low in cost persquare foot.Natural daytimelighting.Easy to relocate.Expandable.Little or noproperty taxes.Call one of our ClearSpan specialists at 1.866.643.1010or visit us at www.ClearSpan.com/ADMMH.mmh.com <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> / A u g u s t 2 0 1 1 57


FOCUS ON Packaging equipmentCorrugated plasticcontainers in 6,000sizesA versatile line of corrugatedplastic containers is offered inmore than 6,000 sizes and 20styles. Durable and lightweight,the containers may be customizedby color or shape toaccommodate contents. Stylesinclude hopper front dividable,stackable hopper front, straightwall dividable, nestable, horizontalcarousel and heavy dutystackable. To protect productsand maximize storage density,partitions and custom foam cushioning may be specified.For shipping of static sensitive products, electrostatic dischargesafe materials can be used in construction. FlexconContainer, 908-871-7000, www.flexcontainer.com.Stretch wrapper uses oversizedfilm for higher outputUsing oversized film rolls measuring 3.28 feet (1 meter), theSilkworm stretch wrapping machine simplifies the end-of-lineprocess with higher output and greater film efficiencies. Thefilm is twice as wide as typically used film, reducing rotations byhalf to effectively wrap a pallet. The film width ensures a highlevel of adhesion during application and greater stability forthe pallet throughout storage and transport. Features include arotating table and one or two wrapping robots for output ratesfrom 110 to 165 pallets per hour. Elettric 80, 847-329-7717,us.elettric80.com.New High PerformanceB55AC• 5,500 lb. (2,500 kg) Capacity• Single / Double Pallet <strong>Handling</strong>• Stacking AisleSingle Pallet 7’ (2.13M)Double Pallet 9’ (2.74M)• High Performance Lift / LoweringSpeeds• Lift Heights to 472” (12M)• AC Traction Motor / Controller,Hydraulic Motor / Controller• DuraSteer TM (Hydraulic ActuatorSteering)LANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION1900 North Street · Marysville, KS 66508 · 785-562-5381 · Fax 785-562-4853mhpsales@landoll.com . 800-428-5655 · WWW.LANDOLL.COM/MHP58 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


Seal up to 40cases per minuteIdeal for high-speed operation up to40 cases per minute, the EZGlue casesealer glues and seals erected andloaded cases in a compact footprint.The system incorporates a flight bar toensure that each case is square prior tosealing, making it perfect for tall casesthat tend to tip on a belt conveyor, orfor light or heavy cases that require a positive push through the machine. Featuresinclude a heavy-duty, welded steel frame base, a trouble-free mechanical chain drivesystem and Omron PLC with touchscreen user interface for full access to all machinefunctions. To enhance safety, the system is equipped with interlocked gates anddoors, and low control voltage. Eagle Packaging Machinery, 305-622-4070, www.eaglepm.com.High-speed robot palletizesup to 1,900 cycles per hourWell-suited for high-volume production inbag and box palletizing operations, theM-410iB/140H palletizing robot handles a308.6-pound payload. Its slim arm and wristfeature integrated cable routing to minimizeinterference with tooling and other peripheraldevices, while its compact size allows itto work in small spaces with low ceiling heights. An intelligent device, the robot uses2D bar code reading to adjust its end-of-arm tool to match the size of each case tobe handled, as well as an integrated auxiliary axis that coordinates gripping force andcase placement. The robot performs 1,900 standard palletizing cycles an hour—onecycle in less than 2 seconds. Fanuc Robotics America, 800-477-6268,www.fanucrobotics.com.Reusable pallet for grocery industryThe 40 x 48 x 6-inchTS reusable plastic palletis ideal for storage,shipping and handlingof products distributedthroughout the grocerysupply chain. Nestable,the pallet optimizes spaceby fitting 1,260 pallets instandard 53-foot trailers. Its anti-skid surface holds cases and boxes in place in transitand at retail. For easy handling and durability, it features four-way hand and fork truckentry, contoured corners and surfaces, and smooth, non-porous construction (withoutnails, rust or splinters). The pallet’s all-plastic construction does not absorb moistureor odor while ensuring dimensional consistency and repeatable performance. ORBIS,888-307-2185, www.orbiscorporation.com.WeManufactureWarehouse Solutionswww.interlakemecalux.com


Partnership. Innovation.Creating Supply Chain Solutions.FOCUS ON Packaging equipmentYou’re not outgrowingyour facility - just lookup and realize yourfull potential!MODULA: 9,000 sq.ft. of storage spacein 158 sq. ft. offloor space.Think tall.Think automated.Think MODULA.Your easy,efficient,ergonomicstoragesolution.Conventionalin-line palletizerincorporatesrobotic armsPackaged with a combinationof a conventional inlinepalletizer and a roboticarm for pattern formingin single- and multi-line applications, the Alvey 950 series palletizeris ideal for handling small finished case sizes, multipleproduct formats and complex patterns. The system uses one ormore jointed-arm robots for pattern forming, coupled with flexibleprogramming capability with the human machine interface.This design permits fast and easy product reconfiguration andquick line changeovers at packaging rates of more than 100cases per minute. Gentle product manipulation accommodatesa reduction in secondary packaging without compromising finishedproduct integrity. Intelligrated, 877-315-3400,www.intelligrated.com.Special containers protect produceThree new reusable plastic containers handle bananas, eggs andstrawberries. Specially configured to protect these perishablesduring transport from farm to store, the ergonomic containersreduce shrink and enhance handling. The RPC for bananasprovides faster cooling and better temperature managementfor fruit ripening and freshness at retail display. The strawberrycontainer meets the industry-standard, 60 x 40-centimeterfootprint, delivering a cross-stackable pack of nine 1-poundclamshells for a 9% increase in clamshells per pallet versus conventionalcorrugated pack. For fresh egg producers, the eggcontainer improves protection and quality from source to consumersby reducing breakage shrink by more than half. IFCO,813-463-4124, www.ifcosystems.com.www.modula-us.comwww.systemlogistics.com60 A U G U S T 2 0 1 1 / MODERN MATERIALS HANDLING mmh.com


Void-fillpackaging foamFeaturing plant-based,renewable materials,Instapak RC45 foam iseasy to use and idealfor light-duty packagingapplications. The foamincludes 25% renewablecontent, reducing theuse of petroleum-basedraw materials. It is compatiblewith the supplier’s Instapak foam packaging systems,and is shipped and stored as highly concentrated liquid product.When the two liquid components are mixed (on-site andon-demand), the resulting foam is used to create form-fittingpads that provide cushioning, blocking, bracing and void-fillprotection. Sealed Air, 800-648-9093, www.sealedair.com,www.instapak.com.Kit prevents washing machine damageTo ensure load stabilization and prevent drum damagewhen moving residential and commercial grade front andtop loading washing machines, the Litkit is an alternativeto bolting the drum in place during transit. The system isless expensive than drum protection kits sold by washingmachine manufacturers. Quick and easy to install, thereusable Litkit system works with all makes and modelsand accommodates older machines that have no OEMdesignedstabilization kit. Litco International,330-539-5433, www.litco.com.Part bin for work-in-process useIdeal for work-in-process, the PB104-4 part bin measures 10 x 4 x 4inches. It provides secure storage of parts and product in assemblyoperations, warehouse and hardware merchandising applications. Thebin is compatible with several of the supplier’s metal storage systems,including rail and louvered panel floor stands, wall-mounted units andbench assemblies; shelf systems; metal cabinets; bin carts and wireshelving. Manufactured of polypropylene to resist water, rust and corrosion,the bin may be specified in six colors (red, dark blue, yellow,green, stone and clear) for organization. A molded-in label area onthe front of accommodates bar code placement or identification label.LewisBins+, 877-975-3947, www.lewisbins.com.How do we offer unbiased bulk container solutions for all types of applications?We’ll handle it.www.bulkpak.comWith bulk containers, one size doesn’t fit all. ORBIS BulkPak® offers the largestselection of bulk containers in the industry, and the solutions you need for anyapplication, from industrial, food and beverage to storage and distribution.And if we don’t have it, we’ll fabricate it just for you.mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 61


FOCUS ON Packaging equipmentMobile pallet wrapper includes pallet jackOffered as an alternativeto conventional handheldstretch wrapping, theGW-3500 mobile palletwrapper is portable andincludes a pallet jack forimproved productivity, consistentlywrapped loads,elimination of wasted filmand a reduction in workerinjuries. The wrapper handles70-inch diagonal loads,wrapping 10 loads per hourwhile running at 11 revolutionsper minute. Featuresinclude manually adjustablefilm tension, up/downwrapping cycles, independent top and bottom wrap patternselection from one to nine wraps and a splash-proof wrappingmode. GaleWrap, 866-425-3727, www.galewrap.com.Doosan is a respected company worldwide,focusing on the development of its people,the production of quality products andservices while at the same time supportingthe customer of today and tomorrow.Doosan. Global company.Empowered employees.Reliable products.Affordable, semi-automaticstretch wrapping machineThe Sentry semi-automatic stretch wrapping machine unitizespallet loads weighing up to 4,000 pounds. Capable of handlinga maximum load size of 52 x 52 x 48 inches, the unit featuresa low profile turntable that can be loaded with a forklift or bypallet jack (with an optional ramp). With a maximum speedof 12 rotations per minute, approximately 20 to 30 loads perhour can be unitized. The 20-inch stretch filmis elongated through a powered prestretchfilm carriage for a stretch ratio of 200% tomaximize film strength and decrease filmusage. The machine also integrates a variablecarriage speed, automatic load heightsensing, home position alignment, separateadjustments for top and bottom wraps anda user-friendly, multi-lingual control panel.Orion Packaging Systems, 800-333-6556,www.orionpackaging.com.www.doosanlift.com2905 Shawnee Industrial Way, Suwanee, GA 30043


Extruded plastic slip sheets, dividers offeredAline of extruded plastic sheet products—including slip sheets,divider sheets and pallet pads—is made from 100% recyclablematerials. The slip sheet is offered as an alternative to woodpallets and corrugated sheets for one-way shipments. It is engineeredto reduce tab failures and have a higher coefficient of frictionthan comparable sheets. Each weighs 2 pounds and requiresminimal space in a trailer or container, allowing shipment of moreproducts while improving sanitation, saving warehouse space andreducing the cost of each unit load. Manufactured with recycledHDPE resin, the sheets come in standard or custom sizes. RehrigPacific, 800-421-6244 www.rehrigpacific.com.Hybridair-pillowcushioningsystemThe AirSpeed hybridcushioning (HC) Versamachine producescushioning in threedifferent widths: 24,18 and 12 inches. Theunit can produce 0.75-,1- and 1.25-inch cellheights with a typical perforation preset of every 6 or12 inches. As air is transferred between the individualchambers of the film, rows of small air-filled pockets arecreated. The system handles multiple roll widths up to32 inches on a dispenser head that is 60% smaller thanprevious models, and uses HC-Flex high performancelow-density polyethylene air pillow film made with 30%less resin than alternatives. Flat, perforated rollstock ismounted onto the unit externally for placement flexibilityand space savings. Pregis, 877-692-6163, www.pregis.com.Extra-long bin for pallet rack storageThe 42-inch long Rackbin extra large storage bins fit pallet rack to store largeritems without wasted space. Ideal for easy organization of inventory, theheavy-duty bins are made of polypropylene, making them waterproof andcorrosion free. The bins may be specified in three widths and two colors—blueand gray. For easy handling, the bins include heavy-duty front, back and sidegrips, and a wide stacking ledge and anti-slide lock that keeps stacked binssteady by preventing forward shifting. Each bin has a pattern on the bottomfor eight, 0.25-inch drill holes for easy insertion of openings for drainage andair circulation as needed. Quantum Storage Systems, 800-685-4665, www.quantumstorage.com.We put moreinto it.We’ll handle it.www.bulkpak.comWith industry leading expertise, innovation, high qualityproducts and lowest total cost of ownership, it’s easy tosee why ORBIS BulkPak is the leading choice for bulkcontainers in the industry. You get more out of BulkPak,because we put more into it.To schedule a supply chain analysis today, please visit www.bulkpak.com or call 888-217-0965.mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 1 63


SAFE • NESTABLE • ECONOMICALWORRY FREE PALLETSNo bag damage from wooden deckboards and nails+ EXPORT EASYIPPC-ISPM 15. No Mold and Bugs. Meets New Canadian Rules+ ECO-EFFICIENTCradle to Cradle Certified CM Silver+ BUDGET SOOTHINGNestability saves 60% of touches and travel time= PEACE OF MINDpresswoodBAG pAlletsCommitted to excellence since 1962LITCO INTERNATIONAL INC.877-687-4975 • info@litco.comwww.litco.com/BagPalletINCA presswoodBAG pAlletWood waste problems?CONTACT US!FOCUS ON Packaging equipmentPaper-based honeycomb palletsoffer branding surfacesThe all-paper, honeycomb-based Billboard pallet features anouter edge wrap of kraft paper layers laminated to a claycoated(white) outer surface onto which logos, brands or storenames can be printed in a repeating pattern. Ideal for use withproducts sold in warehouse stores, where items are stackedseveral pallets high and the product may be obscured bystretch wrap, the pallet edge is still exposed. The pallets contain80% virgin fibers and wrapped fiberboard feet for waterresistance. Each weighs approximately 8 to 10 pounds, andhandles static loads up to 6,000 pounds. Pregis Hexacomb,877-692-6163, www.hexacomb.com.THE ADVANCE “P” SERIES ADVANTAGES Our standard warranty exceeds the cyclewarranty that many of our competitors’ offeron their high cycle lifts. Bearing life increases exponentially withincreases in width. Our “E” lifts and 90% of ourcompetitors’, lifts only have .75” wide main axlebearings. The “P” series is 233% wider. Our tests have shown this exclusive feature candouble or triple the life of a lift by eliminatingsteel friction between platforms and legs. Only Advance Lifts has a UL listed panelshop on premises. This insures reliabilityand safety for our customers.IF: Value = Price / Useful LifeTHEN: Advance Lifts Is The Clear Value Winner!1-800-843-3625www.advancelifts.comSystem produces 960,000 nestable,plastic pallets per yearThe Pallateer #4 plastic pallet making system is a fully automatedproduction cell employing dual, stack mold technologywith four cavities. With a 6-inch extruder capable of melting2,400 pounds of resin per hour, the system can produce960,000 nestable, one-way 48 x 48-inch pallets annually. Themachine includes a top entry stacking robot, blender, loaders,nitrogen gas generator, mold cooling water chiller and twostack type dual cavity aluminum molds with support beam.Compact, the entire unit fits in a footprint of 47.6 x 16.4 feet.Wilmington Machinery, 910-452-5090, www.wilmingtonmachinery.com.64 A u g u s t 2 0 1 1 / <strong>Modern</strong> <strong>Materials</strong> <strong>Handling</strong> mmh.com


High-speed robotic palletizer with short movementsFor high-speed palletizing applications in minimal floor space, the iP robotic palletizeris equipped with a Fanuc articulated arm robot. The high-level palletizeris integrated with an automatic pallet lift and product collation system to handleproducts at high speeds, 24/7, and in harsh environments. The palletizer preciselyplaces cased and bagged products into highly stable loads. Auto indexingminimizes the motion required by the robot while maximizing speed, efficiency,cost and labor savings. Themachine may be configuredwith dual station 1-in-2-outor with a single station1-in-1-out setup; both arefully automated with pallettransport conveyor, palletdispensing, and slip sheetdispensing. SchneiderPackaging Equipment,315-676-3035, www.schneiderequip.com.On-demand cushion film is curbside recyclableProduced on-demand using ambient air, AIRplus cushion film eliminates theinventory and handling issues associated with pre-made bubble products. Theflexible material is formed on simple-to-use machinery that occupies a small footprintfor space savings. It usestriple layer film to cushion andprotect, or to serve as void fill,and is curbside recyclable. Idealfor wrapping consumer electronics,glass, ceramics, CDs andDVDs, the flexible wrap includesperforations for easy separation.Storopack, 800-827-7225, www.storopack.com.WeManufactureWarehouse SolutionsInflatable, flexible packagingprotects irregularly shaped productsThe customizable O3 Flex packaging system preventsproduct damage by surrounding the entire surface ofthe product with air tubes. Ideal for irregular shapes,the packaging wraps around and protects irregularproducts and surfaces. Made from multi-layeredpolyethylene strengthened with nylon, each of the tubes of air is isolated fromsurrounding tubes, ensuring that if one is deflated the rest remain inflated. Themoisture resistant material is transparent for full visibility of contents and is 100%recyclable. Valtego, +852 2559 9413, www.valtego.com.www.interlakemecalux.com


modern 60 Seconds with...Jeff RufenerTitle: President of the IndustrialTruck Association (ITA); vice presidentof marketing for MitsubishiCaterpillar Forklift America (MCFA)Web site: www.indtrk.org;www.mcfa.comExperience: More than 30 yearsin sales and marketing; nearing theend of a two-year term as presidentof ITA.Duties: To represent the interestsof the manufacturers who comprisethe lift truck industries, includingmarketing, engineering and regulatoryareas, and trade-related issues.<strong>Modern</strong>: The lift truck industry washard hit during the recession, but2010 was “wow.” How do thingslook in <strong>2011</strong>?Rufener: We were up 40% in 2010over 2009, and so far for <strong>2011</strong> we’re35% better than last year. That’s amarked difference from 2009, whenwe were down about 50% from ourpeak. We’re a capital goods industryand business stopped that type ofspending in 2009. A strong recoveryin the manufacturing sector has leadthe return to spending for now.<strong>Modern</strong>: We understand there’s beena surge in the purchase of electrictrucks. What’s driving that trend?Rufener: Over the last five yearsthere has been a significant shift inthe types of lift trucks sold towardelectric. Some of that has been theresult of the economy. It’s prettycommon to see a shift toward electrictrucks during a downturn. That’sbecause larger companies tend touse electric and they tend to weatherdownturns better than smallercompanies because they remaincommitted to capital investmentplans. Also, industries like food andbeverage tend to be more resilientand they buy electric trucks. Thatsaid, I think there are some factors atwork that suggest the trend is morelong lasting. For example, in 2005,about 55% of the industry’s orderswere electric. In 2009, it was 69%.The percentage has pulled back alittle this year, but the cost of fossilfuel is going up, there is increasedconcern of the environmental impactof fossil fuels, and we’re seeingimprovements in electric technology.That’s why I think it’s a permanenttrend and not connected to theeconomic cycle.<strong>Modern</strong>: Fuel cells have received alot of attention lately. Are they viabletoday and what are the promise andlimitations of fuel cells?Rufener: When it comes to fuel cells,there are differing opinions in theindustry. From a technical standpoint,fuel cell technology has proved itself.For that reason, I think fuel cellsof some sort will be a part of thelandscape in the future. However, thatwill be further out than the next fewyears. Commercialization has to occurand be independent of governmentsupport. Right now, the hydrogen fuelcell industry can’t sustain itself. Thefuel infrastructure also has a long wayto go; yes the technology works, butgetting hydrogen to a facility can bean issue. That’s a part of this puzzlethat has to be solved as well. M

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!