EC& TI

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

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E
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mmh.com E

®
July 2019

Indiana University
Health builds a
supply chain
(and a DC) 20
READER SURVEY
Results of our annual
software user survey 30
SPECIAL REPORT
Top 20 supply chain software
suppliers 36
INFORMATION MANAGEMENT
WES evolves beyond the
four walls 42
BEST PRACTICES
NextGen Supply Chain Awards 48

Dennis Mullins, senior

vice president of supply
chain operations for
Indiana University Health
distribution center
 UP FRONT BREAKING NEWS YOU SHOULD KNOW

MHI to hold pre-selection event

for Robotics and Automation
Solution Center at ProMat 2021
ProMat 2021 will feature a new Robotics
and Automation Solution Center in the
North Hall of McCormick Place. From
AS/RS and G2P to AGVs and AGCs to
autonomous mobile robots and articu-
lated robotic arms, the solution center
will showcase how these solutions play a
vital role in operations.
“High competition in the e-com-
merce industry has led to increased
demand for speed, accuracy and
efficiency in supply chain operations,”
said George Prest, CEO of MHI. “As a
result, ProMat attendees are increas-
ingly looking for robotics and automa-
tion solutions for their warehouse
and distribution center operations as
a means to reduce operational and
logistical costs and to save on delivery
time in this hyper-competitive business
environment. This new Solution Center
at ProMat 2021 will meet that need.”
MHI will hold a space pre-selection
for the new Robotics & Automation
Solution Center on July 24-25, 2019.
To participate in the pre-selection,
you must submit your lease by July
17, 2019 at 5 p.m. ET. After the event,
the floorplan will be closed until the
ProMat 2021 Exhibit Space Draw on
Nov. 19, 2019.

Expo Pack Guadalajara breaks records Brambles, CHEP launches

The largest show in Expo Pack Guadalajara history welcomed
a record-breaking 17,000 attendees to a sold-out show. More
than 700 exhibitors filled the 15,000-net-square-meter show
floor. Already the largest packaging and processing event in
Latin America, Expo Pack Guadalajara 2019 exceeded projec-
tions for the show’s producer, PMMI,
The Association for Packaging and
Processing Technologies.
“Expo Pack Guadalajara showed
this year that it has cemented its place
as the premier packaging show in the
region,” said Anthony Colquitt, director
of business development—LATAM for
BW Packaging Systems. “Not only the
number [of attendees], but the quality of the companies and
customers who attended was beyond belief. We were able to
have productive meetings and move projects forward because
the right people were at the show.”
Exhibitors and attendees traveled from more than 40
countries with international pavilions hosting companies from
Argentina, Canada, China, France, Italy, Spain and the U.S.
Nearly 110 new exhibitors attended on a show floor 15% larger
than Expo Pack Guadalajara 2017, while the Expo Pack Verde
program, exceeded 150 exhibitors.
Zero Waste World in NA
CHEP, a Brambles company and leader in supply chain
solutions, announced a new initiative called Zero Waste
World. The program, being rolled out globally in the com-
ing months, brings together retailers
and manufacturers to create smarter
and more sustainable supply chains.
Through cross-sector collaboration,
CHEP seeks to solve the dual chal-
lenge of growing consumer demand and global concern
for the environment.
CHEP is initially working with its global customers such
as Unilever and North America-based customers such as
Walmart Canada and California Giant Berry Farms. CHEP
looks to soon expand the initiative to multi-company
coalitions and open innovation events in which supply
chain experts can discuss sustainability topics ranging
from reverse logistics to shared transportation solutions
to data-driven approaches.
“Zero Waste World is a working collaboration of
companies committed to three primary sustainability
challenges, ” said Laura Nador, president of CHEP North
America. “Those areas are eliminating waste, eradicating
empty transport miles and cutting out inefficiencies.”

Clark announces Raising Hope Campaign’s “Pink Truck” program

Clark Material Handling Co., a leading
global manufacturer of forklift trucks
and spare parts, announced a “Pink
Truck” program where authorized
dealers may order any of the supplier’s
new S-Series forklifts with a pink paint
scheme. The program was created to
raise awareness about the 58 agencies
around the country supported by Clark
mmh.com
and Clark dealerships. The pink forklifts commitment we
show support for all of the philanthropic have to serve our
activities in which companies engage. community,” said
The SMART STRONG SAFE S-Series Mike Sain, presi-
design elements are available in LPG, dent of Material Handling Inc. “These
dual fuel and diesel. great pink trucks show everyone that
“As we continually serve the Clark and Clark dealers truly believe
communities in which we work, this in supporting and giving back to our
program visually demonstrates the neighbors.”
MODERN MAT ERIA L S HA NDL ING / J u ly 2019 3
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 VOL. 74, NO. 7

COVER STORY
®

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,

WAREHOUSING AND MANUFACTURING

TECHNOLOGY
& INNOVATION
S P E C I A L I S S U E

System walk through,

page 28
Joe Robbins/Getty Images for Peerless Media

SYSTEM REPORT 60 seconds with...

20 Indiana University Health builds Michael Wohlwend

a supply chain (and a DC)

To drive efficiency, Indiana University Health created its DEPARTMENTS & COLUMNS
own procurement, logistics and distribution network.
3/ Upfront
The centerpiece is a highly automated 300,000-square-
foot distribution center. 7/ This month in Modern
16/ Lift Truck Tips: Narrow Aisle

FEATURES
18/ Packaging Corner: Cubing & Weighing
54/ Productivity Solution
READER SURVEY
56/ Supplement: Automotive
30 Readers embrace software’s leading
60/ Special Section: Corporate Profiles
role in warehousing and distribution
As the complexities of modern-day fulfillment continue to grow, 78/ Focus On: Conveyor & Sortation
software is playing an increasingly important role in how companies 82/ 60 seconds with...
manage in this dynamic environment.

SPECIAL REPORT NEWS

36 Top 20 supply chain software suppliers
The technology that drives today’s supply chains is getting stronger,
better and faster thanks to an innovative group of suppliers pushing
the envelope.
INFORMATION MANAGEMENT
42 WES evolves beyond the four walls
Warehouse execution systems are becoming more important to
automated warehouses that need to manage machines, people and
inventory resources against a high-velocity stream of orders and
tight delivery commitments. WES can be more than a one-function
solution for orchestrating zones and operate as a complex hybrid
that paces work.
BEST PRACTICES
11/ CBRE report: Ongoing demand
leads construction of new warehouses
12/ Zebra: Six in 10 plan warehouse
automation to augment labor by 2024
14/ Acumatica announces acquisition
by EQT Partners, joins forces with IFS
Modern Materials Handling® (ISSN 0026-8038) is published monthly
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MA 01701. Annual subscription rates for non-qualified subscribers:
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Handling, PO Box 677, Northbrook, IL 60065-0677 USA. Periodicals
postage paid at Framingham, MA and additional mailing offices.
POSTMASTER: Send address changes to: Modern Materials

48 NextGen Supply Chain Awards

Handling, PO Box 677, Northbrook, IL 60065-0677. Reproduction
of this magazine in whole or
part without written permission
For our inaugural event, Peerless Media recognized five companies of the publisher is prohibited.
leading the way in the adoption of new technologies. All rights reserved.
©2019 Peerless Media, LLC.

mmh.com MODERN MAT ERIA L S HA NDL ING / J U LY 2019 5

 ®
THIS MONTH IN MODERN
EDITORIAL OFFICES
111 Speen Street, Suite 200 MICHAEL LEVANS
Framingham, MA 01701-2000 GROUP EDITORIAL
(800) 375-8015 DIRECTOR

Michael Levans

2019 Technology Issue:

GROUP EDITORIAL DIRECTOR
mlevans@peerlessmedia.com
Bob Trebilcock

Watch the whirlwind

EXECUTIVE EDITOR
btrebilcock@peerlessmedia.com
Noël P. Bodenburg

W
EXECUTIVE MANAGING EDITOR
npbodenburg@peerlessmedia.com hile it’s easy to get lost in the activities to best-in-class procurement, fulfill-
Josh Bond whirlwind of discussion around the ment and logistics processes, and all managed
SENIOR EDITOR
jbond@peerlessmedia.com latest technology trends and how by an experienced team that’s housed at the
Sara Pearson Specter they’re transforming supply chain processes, DC,” Trebilcock adds. “It’s really the future of
EDITOR AT LARGE
sara@saraspecter.com this month the Modern editorial staff has put healthcare. “
Roberto Michel together our 7th-annual Technology Issue, our And while we’re seeing more healthcare
EDITOR AT LARGE
roberto.michel@charter.net
attempt to define how we’re actually doing at systems embrace technology in response to the
Bridget McCrea
applying the available technological toolkit. pressures of increasing revenue while manag-
EDITOR AT LARGE While e-commerce fulfillment gets all the ing costs, Modern’s annual “Materials Handling
bridgetmc@earthlink.net
coverage these days, one of the most excit- Technology Study” reveals industries across
Jeff Berman
GROUP NEWS EDITOR ing supply chain technology transformations the board continue to adapt software at a swift
jberman@peerlessmedia.com
is actually taking place inside the healthcare pace to keep up with modern-day demands.
Wendy DelCampo
SENIOR ART DIRECTOR industry. Kicking off the technology issue, Editor at large Bridget McCrea puts context
wdelcampo@peerlessmedia.com executive editor Bob Trebilcock takes us inside behind all the findings (page 30) of this study
Polly Chevalier
ART DIRECTOR Indiana University Health’s brand new, highly that offers the most comprehensive snapshot
pchevalier@peerlessmedia.com automated 300,000-square-foot Integrated available of current software usage and future
Daniel Guidera Service Center in Plainfield, Ind. (page 20). investment plans.
ILLUSTRATION
daniel@danielguidera.com “For years, healthcare providers saw them- “As we’ve seen over the last five years, as
Kelly Jones selves as caretakers,” says Trebilcock. “Supplies complexity grows so too does the reader per-
PRINT/ONLINE PRODUCTION
MANAGER were a means to an end, and the cost of dis- ception that software is playing an increasingly
kjones@peerlessmedia.com
tribution was an afterthought. But today, with important role in how they need to manage in
Brian Ceraolo everyone trying to control the cost of delivering this dynamic environment,” says McCrea. “And
PRESIDENT AND CEO healthcare, that’s no longer an option.” that’s great news. In fact, this year’s survey
bceraolo@peerlessmedia.com
Fully understanding the need to increase reveals that 60% of companies are using more
PEERLESS MEDIA, LLC
www.peerlessmedia.com revenue, decrease costs, and do both while materials handling software than they did just
maintaining patient care, Indiana University two years ago, that’s up from 49% in 2018.”
MAGAZINE SUBSCRIPTIONS
Start, renew or update your FREE Health realized it also needed to become a If you still feel as if you’re lost in the whirl-
magazine subscription
Web: mmh.com/subscribe world-class supply chain organization. Its new, wind of discussion regarding what technology
Email: mmh@omeda.com
Phone: 847-559-7581 state-of-the art DC features robotic storage can do for your operation, join me at Modern’s
Mail: Modern Materials Handling
P.O. Box 677 and goods-to-person picking, a pick-and-pass 2019 Virtual Summit: Reaching the Next Level
Northbrook, IL 60065-0677
For reprints and licensing module with four zones, nearly 1,000 feet of of Productivity (Thursday, July 25). This year’s
please contact Brett Petillo
877-652-5295, ext 118 conveyor and sortation, and 21 aisles of rack speakers are going to take a deep dive into
peerless@wrightsmedia.com.
and shelving storage with 8,500 full pallet how automation, robotics, software and mobil-
ENEWSLETTER SUBSCRIPTIONS
Sign up or manage your FREE
locations and 2,500 case locations. ity are enabling warehouse/DC operations to
eNewsletter subscriptions at
www.mmh.com/enewsletters.
“In just three or four years time, they went keep pace with the digital world—and deliver
from outsourcing all of their supply chain it without the hyperbole.

peerlessmedia.com
peerlessmedia.com Member of Winner
Official Publication of
Member
Jesse H. Neal
Certificates of
Merit for Journalistic
Excellence

peerlessmedia.com
CMYK GRAYSCALE
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WAREHOUSES
CBRE report: Ongoing demand leads
construction of new warehouses
CBRE reports more than 255 million square feet of warehouse space is
under construction. Since 2015, warehouse demand has outpaced new
construction completions by 169 million square feet, with rents up 19.2%
over that same period.
BY JEFF BERMAN, GROUP NEWS EDITOR
THE THESIS OF DEMAND
CONTINUING to outpace
new warehouse construction
and development contin-
ues to remain firmly intact,
according to research issued
last month by Los Angeles-
based industrial real estate
firm CBRE.
CBRE reported that more
than 255 million square
feet of warehouse space
is under construction, with
70.2% of it being specula-
tive. And going back to 2015, based
on data issued by CBRE Econometric
Advisors, warehouse demand has out-
paced new construction completions
by 169 million square feet, with rents
up 19.2% over that same period.
From a market perspective, CBRE
explained that five of the top 10
markets for speculative development
“have market conditions that justify
adding more big-box warehouses,”
mmh.com
Follow
Modern Online
with vacancy rates that are below
or slightly above the 4.4% national
average—in addition to aggregate
net asking rent growth of 8.7% on an
annual basis.
And the other five markets, CBRE
said, were “well above the national
vacancy average, with aggregate rent
growth averaging 4.7%,” which it
attributed to more available supply.
CBRE senior industrial and logistics
MODERN MAT ERIA L S HA NDL ING / J
facebook.com/mmhmagazine
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Web | mmh.com
analyst Jamil Harkness said
in an interview that ware-
house demand is expected
to remain on par with new
completions in the foresee-
able future.
“There is a lot of specula-
tive warehouse develop-
ment underway, and many
developers are confident
there’s enough demand
from e-commerce, food and
beverage, retail, wholesal-
ers and 3PL users to occupy
new completions,” Harkness said.
Harkness explained that e-com-
merce and the emergence of cold stor-
age (food and beverage) lead the pack
as the ongoing drivers for increased
demand for new construction.
“Major markets with large metro
populations have benefited the most
due to the increase in online sales,
namely the growing convenience
of purchasing items for home deliv-
U LY 2019 11
 ery,” said Harkness. “These forces
coupled with low vacancies should
only increase the need for warehouse
space, prompting more warehouse
development. Conversely, the only
impediments to continued demand
and development are forces outside
of commercial real estate, like a tariff
war and other unforeseen economy
crises.”
CBRE said the markets most likely
to see the demand continue include:
Inland Empire, Los Angeles; Las
Vegas; Seattle; and New York, due to
low warehouse vacancies.
Harkness noted that infrastructure,
port access and the growing propen-
sity to purchase items online makes
these markets ideal for continued
warehouse demand from e-com-
merce, food and beverage, whole-
saler and 3PL users.
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TECHNOLOGY
Zebra: Six in 10 plan warehouse automation
to augment labor by 2024
Zebra Technologies announced the
results of its “2024 Warehousing Vision
Study,” analyzing IT and operations
decision makers’ current and planned
strategies for modernizing their ware-
houses, DCs and fulfillment centers.
The study reports on the forward-
thinking fulfillment strategies com-
panies are focusing on to keep up
with the growth of the on-demand
economy. According to the survey,
more than three-quarters (77%) of
respondents agree that augmenting
workers with technology is the best
way to introduce automation in the
warehouse, but only 35% have a clear
understanding of where to start. In the
meantime, 87% of those surveyed are
in the process
of or planning
to expand the
size of their
warehouses by 2024, with 82% antici-
pating an increase in the number of
warehouses during this time.
By 2024, automation will enhance
worker performance rather than
replace workers. Some of the other
findings include:
• 61% plan to enable partial auto-
mation or labor augmentation with
technology in the warehouse.
• Three-quarters of respondents
believe human interaction is part of
their optimal operational balance,
with 39% citing partial automation

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(some human involvement) and 34%
citing augmentation (equipping work-
ers with devices) as their preference.
• Decision makers anticipate using
robotics for inbound inventory man-
agement (24%), outbound packing
(22%) and goods in/receiving (20%)
by 2024.
Rethinking fulfillment strategies
and operations to meet emerging
challenges remains a top priority.
• 59% of respondents cited capac-
ity utilization as a significant expected
challenge and plan to address it by
expanding the size of their warehouses.
• 60% of organizations cited labor
recruitment and/or labor efficiency
and productivity among their top chal-
lenges, with 63% of respondents not-
ing an immediate focus on individual
or team productivity outcomes.
• IT/technology use was identified
both as the most anticipated opera-
tional challenge (61%) of the next
five years and a desired long-term
outcome for increased asset visibility,
real-time guidance and data-driven
performance.
• As warehouses expand, so will
the volume of SKUs and the speed
items need to be shipped. Decision
makers will seek increased visibility
and productivity by implementing
more robust returns management
operations (81%), task interleaving
(80%), value-added services (80%),
and third-party logistics (83%).
The investment and implementa-
tion of new technologies is critical
for remaining competitive in the on-
demand economy.
• Almost half (46%) of surveyed
respondents cited faster delivery to
end-customers as the primary factor
driving their warehouse growth plans.
• More than three-quarters (77%)
of decision makers agree they need
to modernize operations across the
warehouse to remain competitive but
are slow to implement new mobile
devices and technology.
• 73% of companies are currently
modernizing by implementing or
refreshing mobile computers, tablets
and bar code scanners.
• By 2024, modernization will
be driven by Android-based mobile
computing solutions (83%), real-time
location systems (55%) and full-
featured warehouse management
systems (54%).
• And, 60% of respondents cited
mobile bar code label or thermal print-
ers as an area of investment as part of
their plans to add, expand or upgrade
devices in the next three years.

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 SOFTWARE
Acumatica announces acquisition by EQT
Partners, joins forces with IFS
EQT Partners, an investment firm
with $45 billion of assets under man-
agement, announced the signing of
Find us at Booth LS-6310
14 JU LY 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
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Cloud-native enterprise software pro-
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ment vehicle owned by the same
holding company that holds IFS AB
(Industrial and Financial Systems).
IFS, the global enterprise applica-
tions company, and Acumatica, a fast-
growing Cloud enterprise resource
planning (ERP) provider, will serve
growth industries such as manufactur-
ing, distribution and energy, while com-
peting directly with SAP, Oracle, Micro-
soft, Infor, and Sage among others.
“I closely evaluated IFS and Acu-
matica for ‘The IDC MarketScape:
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sive experience of providing a true
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service offering.”
“IFS is an admirable company in
the ERP market who shares our belief
in customer satisfaction,” said Jon
Roskill, CEO, Acumatica. “We could
not have asked for a better match of
technologies, strategies and cultures.”
The new entity is designed to meet
a range of customer requirements. To
address these needs the two compa-
nies will tap into one another’s ISV,
reseller and systems integrator commu-
nities, cross-pollinate resources and
roadmaps, and implement best prac-
tices. Both companies are currently
adopting artificial intelligence and
machine learning features into their
products and expect to achieve early
success in that area.
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LIFT TRUCK TIPS
Get the most from
your VNA storage
New technologies and capabilities
enable today’s VNA trucks to be more
productive than ever.
By Bob Trebilcock, Executive Editor
E
fficient use of space has always been important in
distribution centers. But with the cost of industrial
real estate going nowhere but up, facility managers
are trying to get the most out of their existing footprints,
or new facilities. That’s why very narrow aisle, or VNA,
storage is topping many people’s lists. Not only can you
shrink the traditional 10-foot width of a reach truck aisle,
says Christopher Grote, marketing product manager for
Class II products at Crown, but you can extend the rack
height to 56 feet—much higher than conventional reach
trucks—to take better advantage of the cube.
New VNA turret truck technologies, capabilities and
applications mean that VNA storage is not only more effi-
cient, but the operations are more productive, Grote adds.
“When we think about VNA, you not only want to better
use your space, you want to increase throughput,” he says.
“You look at travel speeds, lifting speeds, traverse speeds,
lowering speeds and pivoting speeds. Those five together
are going to heavily impact your overall productivity.”
“Automated fencing and positioning technologies”
available on some of today’s trucks provide a level of
semi-automation that can promote safety and determine
the most optimal path, and speed, to automatically take a
driver from Point A to Point B. Auto-positioning technol-
ogy controls the truck’s blend of lift and travel to optimize
the time and energy required to reach and automatically
stop at the rack location.
Drivers resume control of the vehicle once they arrive
at the pick or putaway location. With auto fencing, speed
and height zones can automatically be programmed for
safer operation. For instance, the truck may only be able
to lift to a certain height in an area with an overhead ob-
16 Ju ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
struction, like an HVAC duct, or travel only so fast where
there’s pedestrian or lift truck tunnels in the application.
“I’m only impacting productivity in areas where’s it’s nec-
essary, based on the needs of the facility,” says Grote.
Another important development, especially in applica-
tions like a freezer where storage density is important to
control temperature, is the combination of a turret truck
with pushback and flow rack to a pick module. On one side
of the VNA aisle is pushback rack. On the other side of the
aisle is pallet flow rack that feeds a pick module, with ad-
ditional pushback or selective racking above.
The pushback rack provides efficient reserve storage,
while the flow rack feeds the pick face. When a pallet is
empty, the order selector removes it, allowing the pallets
behind it to move forward. That signals to the turret truck
operator to replenish the back of the flow rack from the
pushback rack.
“Historically, it’s been unconventional to see a turret
truck operating with both flow and push back rack. But in
an application where density means everything, it’s a very
effective use of space,” he says.
Grote adds that the concept could be applied to
various types of pick modules, including floor only (using
pallet rider trucks) or even a multi-level pick module
(using conventional order pickers).
Bob Trebilcock is Modern’s executive editor and can be
reached at btrebilcock@peerlessmedia.com.
mmh.com
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PACKAGING CORNER

Checkweigher features
open-source software
A combination of checkweigher and PLC allows the equipment’s
operation, data capture and reporting functions to be modified
to meet unique customer needs.
By Sara Pearson Specter, Editor at Large

W
ith the increasing data capture and reporting func-
emphasis on process tions to be modified to meet each
optimization across customer’s needs.
all manufacturing applications— “For example, some factories
including food and beverage— want to know how many over- or
checkweighing has become one under-fills are occurring, or how
of the fastest-growing segments many packages pass or fail. And,
in process weighing, says Tim they want to look at different time
Norman, senior product man- periods to determine a production
ager at Hardy Process Solutions. trend over a day, a shift, a week,
“You can’t correct what you a month, and so on,” he adds.
can’t measure, so companies “With open-source, if they can
are increasingly deploying program in RSLogix, they can tell
checkweighing as a process the machine to generate the data
optimization tool to analyze specific to their production needs.
deviations in products during Other checkweighing systems use
production,” Norman explains. firmware that must be modified by
“However, companies want dif- the original equipment manufac-
ferent types of data from their turer, which is costly.”
checkweighers and, histori- Additionally, the unit is con-
cally, the bulk of the systems in the market cannot easily structed with 90% off-the-shelf components, allowing
accommodate that need.” users to make repairs without being restricted to Hardy as
Based on customer input, Hardy developed its fully their only source for service parts.
automated Dynamic Checkweigher systems with open- “That also makes the unit future-proof. Technology is
source software. Further, the checkweigher’s control, constantly advancing; if the customer wants to upgrade
statistics and analytics are managed with an integrated the machine’s interface screen or use a more powerful
Rockwell Automation CompactLogix programmable logic sensor later down the road, they can do so without having
controller (PLC). “Rockwell Automation controls are the to come back to us. Although we are always available to
platform upon which roughly 80% of U.S. factories are help with 24/7 support,” adds Norman.
built. That makes the machine incredibly easy to inte-
grate,” says Norman. Sara Pearson Specter is an editor at large with Modern and
That combination allows the equipment’s operation, can be reached at sara@saraspecter.com.

18 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG mmh.com

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MODERN system report

INDIANA UNIVERSITY HEALTH

builds a supply chain
(and a DC)
To drive efficiency, Indiana University Health created
its own procurement, logistics and distribution
network. The centerpiece is a highly automated
300,000-square-foot distribution center.

I
BY BOB TREBILCOCK, EXECUTIVE EDITOR

n recent years, a handful of high-profile “Three of the positions on my team

hospital systems, including the Cleve-
land Clinic and Utah’s Intermountain
Healthcare, upended the traditional
healthcare distribution model, which
relied on large, third-party distributors
to purchase, inventory and deliver medi-
cal supplies to hospitals, clinics and
doctor’s offices, often on a just-in-time
basis—at a cost.
Instead, they have created their own
supply chains to manage those pro-
cesses. Add Indiana University Health to
that list. The largest healthcare provider
in the state is in the midst of “transform-
ing hospital supply chain distribution
through consolidation and automation”
by bringing all of those activities in-
house along with a professional supply
chain management staff.
did not exist when I got here in 2015,”
says Dennis Mullins, senior vice presi-
dent of supply chain operations, who
was charged with making the transfor-
mation complete.
The centerpiece of that transforma-
tion is a 300,000-square-foot Integrated
Service Center in Plainfield, Ind. In
addition to housing the healthcare
system’s order fulfillment and distribu-
tion activities, with office space for the
corporate supply chain team, it brings
together records keeping, inventory
management, logistics, fleet services,
equipment planning and non-acute ser-
vices in one building. They are planning
to provide future services to pharmacy,
laboratory, print services, homecare,
physician offices and IT services.

20 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG mmh.com

Left to right: Zina Crump, Kumbia Lewis, Dennis Mullins,
Jennifer Alvey and Derrick Williams.

Joe Robbins/Getty Images for Peerless Media

mmh.com MODERN MAT ERIA L S HA NDL ING / J u ly 2019 21

MODERN system report
The heart of the distribution center’s processes is a robotic storage and goods-to-person picking system.
The distribution operations was
designed by a system integrator (Swiss-
log, swisslog.com), and the highly auto-
mated facility features:
• a robotic storage and goods-to-
person picking solution (AutoStore,
autostore.com) with 7,632 bin
locations and four goods-to-person
workstations;
• a pick-and-pass module with four
zones;
• 950 feet of conveyor and sortation;
and
• 21 aisles of rack and shelving stor-
age with 8,500 full pallet locations
and 2,500 case locations.
All told, the facility manages 3,400
stock keeping units and fills 600 requisi-
tions a day, handling 265,000 units. The
total investment was more than $9 million.
Having gone live in July 2018, the
Integrated Service Center is currently
serving 16 hospital locations around the
state. But the transformation is not com-
plete. Over time, Mullins and his team
expect to extend services to the rest of
the network. “We have 500 non-acute
doctor’s offices and surgical centers
22 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
in our network with more than 1,000
potential delivery locations,” he says.
“We will be developing a solution to ship
small packages using 3PL providers to
those locations.”
The new approach is already con-
tributing to the bottom line: “We set a
target of $4.2 million in savings for the
first year, and we exceeded that number,”
Mullins says. He expects a total payback
in less than 2.5 years.
Change the model
“It all started with a rainstorm.” That’s
how Mullins remembers the chain of
events that led to the new Plainfield
distribution center. However, the pres-
sures on the healthcare industry played a
significant role.
If you pay some or all of your medical
expenses, you know the cost of health-
care has been on the rise, often at a rate
that exceeds other areas of the economy.
That hasn’t translated into price growth
for hospitals, which are under pressure to
simultaneously do three things: increase
revenue, decrease costs, and do one or
both while maintaining or improving
patient care. That, after all, is job one.
The need to increase revenue has
resulted in a spate of mergers and acqui-
sitions across the industry, as hospitals
that previously operated independent of
one another merge or are acquired by
larger players, such as university health
systems. Between 2004 and 2014, the
number of hospitals that were part of a
health system rose from 2,668 to 3,183.
Similarly, private practitioners—the
Marcus Welby’s of the world—are clos-
ing their practices and going to work for
these health systems.
Meanwhile, the need to cut costs has
led major hospital systems to change the
traditional third-party distribution model
by developing their own procurement
departments to contract directly with
manufacturers and creating their own
distribution and logistics networks. That,
of course, requires the development of a
new set of core competencies.
That is the place Indiana University
Health, the state’s largest healthcare pro-
vider with 16 hospitals and some 500 prac-
titioner offices and surgical centers, found
itself in 2015 when Mullins was brought
mmh.com

on board. “We had a traditional distribution
model,” says Mullins, who adds that the
hospital system had a 10-year relationship
with a major medical supplier.
In the old model, the distributors
delivered bulk shipments to central
distribution areas and two regional ware-
houses along with just-in-time deliveries
of products ordered in low units of mea-
sure—instead of a case of 24 bags of IV
fluid that might sit on a shelf, a hospital
could order just six bags delivered the
next day to a specific supply room. While
convenient, those types of services came
at an additional cost.
He and Jennifer Alvey, the execu-
tive director of supply chain strategic
sourcing, say that issues related to sup-
plier drug shortages—a hot topic in the
industry—or additional fees for just-
in-time delivery of low unit of measure
items were a concern, but they weren’t
unhappy with their distributors’ perfor-
Product is staged for putaway into storage.
mmh.com
mance. “It is just that the model of using
a third-party distributor is antiquated for
a system of our size,” Mullins says. By
contracting directly with manufacturers,
he estimated the potential savings from
“2% to 10%.”
One day, Mullins and his operations
team were touring a central storage
building and discovered it had sprung a
bad leak during a rainstorm that dam-
aged medical records. It wasn’t the only
building in need of repair. Mullins took
a bunch of pictures and met soon after
with his then boss, Dennis Murphy,
who is now the company president.
“He asked me to put together a short-
term and long-term perspective, and I
began to put a business case together
for consolidating all of our operations,”
Mullins says. “The clear message I
wanted to send is that we didn’t need to
just replace a warehouse; we needed a
true distribution center.”
MODERN MAT ERIA L S HA NDL ING / J
MODERN system report
Build the team
Mullins says he completed the busi-
ness case in early 2016. One of his first
steps was to expand the operations team.
“When I got here, there was just one
executive director, and this was a job that
was too much for one person,” he says. “I
needed the right level of expertise for the
new model. That took three months.”
Today, he has four executive directors
on the supply chain team. Along with
Alvey, the team includes Kumbia Lewis,
the executive director of supply chain
operations who works with the hospitals;
and Derrick Williams, the executive
director of supply chain logistics, who
oversees the distribution center. Zina
Crump, the executive director of trans-
formation, supply chain, is a recent addi-
tion to the team.
While Alvey’s team was developing pro-
curement best practices around the health
system’s needs, Mullins, Lewis and Wil-
u ly 2019 23
MODERN system report
Items are picked to totes and conveyed to the next stop in the process (top). At the
goods-to-person pick station an associate picks from donor totes.
liams began to develop a plan for a new
distribution center. “The three of us had
been in organizations with a model similar
to what we wanted to develop,” Mullins
says. “We knew what good looked like,
and we wanted to do better than that.”
And, he adds, that while bringing efficien-
cies and savings was important, those
couldn’t come at the expense of patient
24 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
care. Alvey, for instance, wanted to better
manage inventory to reduce or eliminate
medical supply stockouts. “Instead of
putting in an order for an SKU and find-
ing out that it’s on four weeks backorder,
we can now keep four weeks of inventory
on the shelf for critical items,” she says.
“That improves patient care and seques-
ters stock for our patients. It allows us
to allocate resources and develop a plan
prior to running out of items.”
The same held true for the distribu-
tion center. “We understood that we were
designing a distribution center, but we
provide healthcare. We always kept that
at the forefront,” Mullins says.
A first criterion was location. “We
wanted a location that was good for
transportation and also close to the
airport so we could get deliveries from
FedEx and UPS,” says Williams. When
it came to materials handling and order
fulfillment technologies, a priority was
placed on solutions that enabled piece
picking of low unit of measure items at
a high rate.
Mullins says that from the beginning,
he knew he wanted robotics and goods-
to-person picking technologies. As part
of its due diligence, the team did visit
other healthcare provider facilities as
well as facilities operated by companies
outside of healthcare, such as Walmart
and Amazon. And, they considered other
technologies, such as RFID for inven-
tory management and automatic guided
vehicles for non-value-added travel.
Williams adds that prior to the site
visits, they mapped out their processes
as if they already had the technology in
place. Some of the facilities they visited
had a robotic storage and goods-to-per-
son solution in place. “We visited a large
medical supplies distributor in the Mid-
west to see how they used the solution
and visited other facilities to see how
they trained their operators to use the
system,” he says. “One of the important
things is that with the goods-to-person
solution, you can train someone in a day.”
Going live
The new teams were in place and the
systems operable in May of 2018. Part of
the training process involved bringing in
six experienced associates from the hos-
mmh.com
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MODERN system report
Pallets are automatically stretch
wrapped prior to shipment.
pitals because they understood the prod-
ucts being handled, and they understood
the patient-centered culture. “Our focus
is on quality, and connecting our associ-
ates to patient care,” Williams says. “We
want them to understand that they’re not
just picking canned goods. What they
do could help their father, their brother
or their mother. When we ask our team
what keeps them here, they tell us it’s
that connection to the patient.”
The system officially went live on
July 10, 2018. For the first 45 days,
it serviced three hospitals located in
one region. The first order was about
200 lines. After that, they brought the
remaining hospitals on board and phased
out the distributors on a staggered basis.
“We had some bumps and bruises as
with any go-live,” says Mullins. “But by
December 2018, we had all 16 hospitals
live, and we’re picking 6,000 lines a day.”
During that six months, Alvey and
26 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
her team worked to bring manufacturers
onboard while winding down relation-
ships with distributors as the implemen-
tation rolled out across the network.
“Now that we’re working across the net-
work, we can do more around demand
planning, contracting and inventory man-
agement,” she says.
Similarly, Lewis’s job was to work with
the hospitals themselves as they transi-
tioned from working with long-time and
trusted vendors to ordering from a brand-
new and unfamiliar system. “Initially,
they over-ordered because they were
afraid of what could happen,” Lewis says.
“We accepted that and had to do a lot of
planning. Today, they are learning to trust
the system. I can’t say enough about the
cross-functional planning of our team.”
Today, associates are picking between
150 to 180 lines per hour per person.
All told, that translates to an estimated
265,000 units a day. To get started with
automation, Indiana University Health is
contracting with its solution provider to
provide maintenance. “We trained four
of our staff members to troubleshoot the
robots and goods-to-person stations,”
Mullins says. “However, two of our
solution provider’s employees work in a
nearby hospital to maintain the tubing
system, and they’ve been trained to work
on the robots. They can be here in an
hour if we need them.”
With a year of operations under the
new supply chain team’s belt, Mullins
says there’s still a lot to be done to roll
operations out to doctor’s offices and sur-
gical centers. But, given that logistics rep-
resents 37% of the system’s operating
costs, supply chain savings are already
having an impact. “The model of care is
changing and will continue to change,” he
says. “Our goal is to be a strategic impera-
tive to the success of Indiana University
Health. We’re positioned to do that.”
mmh.com
MODERN system report
Robotic storage and goods-to-person picking
Indiana University Health’s new distribution
center drives a new level of efficiency.
T
he health system’s Integrated
Service Center brings together
all of the supply chain functions,
including order fulfillment, planning
and procurement, in one new DC.
Receiving: Receiving (1) takes place
during the morning shift. The facility
receives advanced ship notifications
prior to arrival, and product is verified
off of purchase orders in the enterprise
resource planning (ERP) system. Once
incoming merchandise is unloaded, it is
staged for inspection and putaway within
24 hours.
3
Records
Reserve storage
Receiving 1
28 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
Putaway: Storage is system directed
and dynamic, meaning the system
chooses locations to maximize storage
density rather than trying to group all
like products together. Most of what
is received is sent on pallets to reserve
storage (2) where a lift truck operator
scans license plate and location bar
codes to confirm the putaway location.
It is now available in the warehouse
management system. Some product is
stored at the case level on shelving. Car-
ton and location bar codes are similarly
scanned to confirm the putaway loca-
2
Reserve storage
2 4 Robotic storage
Crossdock 6
Consolidation
Shipping 8
Indiana University
Health Integrated
Service Center
Plainfield, Ind.
SQUARE FOOTAGE: 300,000 square feet
PRODUCTS HANDLED: Everything from
general medical supplies to medical
implants to paper goods.
THROUGHPUT: 265,000 units per day
SKUs: 3,400
PEOPLE/SHIFTS: 3 shifts per day/5 days
per week. The facility is also home to all
of the centralized supply chain functions,
including procurement and contracting.
tion. Finally, the system has the capabil-
ity of replenishing the robotic storage
unit (4) or the pick-and-pass area (5)
5 Pick-and-pass
modules
7
mmh.com

and directly from receiving, although
that has not happened as of yet. The
facility also includes a storage area for
records (3). Finally, the facility features
a crossdock area (6) for items that can
be shipped out as is to a facility with
demand for that product.
Replenishment: Replenishment
takes place at night. The robotic stor-
age system is programmed to keep two
weeks of supply for each SKU. When
the inventory level reaches its minimum
level, the system automatically generates
replenishment tasks for an order selector
who picks cases and then delivers them
to the unit. A similar process is used to
replenish the pick-and-pass area.
Picking: Order fulfillment begins
at the robotic storage unit. Robots
retrieve the required totes and convey
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them to one of four goods-to-person
picking stations. Order selectors are
directed to pick items from the donor
totes and place them in totes that are
shipped to one of the system’s facili-
ties. Once items from robotic storage
have been picked, the totes travel to
a four-zone pick-and-pass area. Items
from each zone are added to the order.
Items that don’t fit in the robotic
storage, known as ground picks, are
picked separately. Items are auto-
matically weighed and if they are in
tolerance, a shipping label is created.
Items are then sent to a consolidation
area (7) where they are joined with
ground picks and assigned by floor and
zone to a specific hospital or facility.
Packing: At the consolidation area,
an associate scans items to a pallet.
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MODERN MAT ERIA L S HA NDL ING / J
MODERN system report
System Suppliers
SYSTEM DESIGN, INTEGRATION,
CONVEYOR & SORTATION, AND
WAREHOUSE MANAGEMENT &
CONTROL SYSTEMS: Swisslog
GOODS-TO-PERSON ROBOTIC STORAGE
& PICKING: AutoStore
MOBILE COMPUTING, SCANNING &
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LIFT TRUCKS: Crown
WEIGHING & CUBING: CubiScan
STRETCH WRAPPERS: Meypack
Once the pallet is built, it is automati-
cally wrapped and staged at a dock
door in shipping (8) designated for a
specific truck. Once there is a full
load, the order is loaded onto the truck
assigned to that wave and the order is
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MODERN reader survey

Readers embrace
software’s
leading role
in warehousing
and distribution
As the complexities of modern-day fulfillment continue to
grow, software is playing an increasingly important role in how
companies manage in this dynamic environment.

A
BY BRIDGET McCREA, EDITOR AT LARGE

s warehouses and DCs become more automated and less reliant on human
labor, and as that labor gets harder to come by and more expensive, the
software supporting these operations is in high demand.
From the warehouse management system (WMS) that more effectively manages
inventory to the warehouse control system (WCS) that directs real-time activities
within the DC to the yard management system (YMS) that coordinates the movement
of vehicles out in the yard, software increasingly provides the platform through which

About organizations’ TMS

How long have you had your And, when did you
current TMS application in place? last upgrade this application?

Less than a year 13% Less than a year 8%

1 to less than 5 years 37% 1 to less than 5 years 50%
5 to less than 10 years 29% 5 to less than 10 years 25%

10 to less than 15 years 4% 15 years or more 4%

Not sure 8%
15 years or more 17%
We haven’t upgraded 5%

Source: Peerless Research Group (PRG)

30 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG mmh.com

most fulfillment and distribution activities are orchestrated. How has your company’s use
Modern Materials Handling’s “2019 Materials Handling of materials handling software
Technology Study” supports this assumption and reveals the changed over the past 2 years?
leading role that software is playing in warehouses and DCs 2% 2% 1% 1% 5%
Decreased
nationwide. For this year’s Peerless Research Group (PRG) 55% 52% 56% 50%
35%
survey of Modern subscribers, respondents shared their views
of current software usage, returns on investment, and key
Same
goals related to their software purchases.
Of the 108 readers who participated in the study, 18% are
corporate/divisional managers, 23% are vice presidents/gen-
eral managers, and 11% are logistics/distribution managers. 60%

Twenty-two percent of respondents work for companies 49%

with less than $10 million in sales and 19% are with firms 46%
43% 43%
that have $10 million to $49.9 million in annual sales. The
bulk of respondents (32%) work for manufacturing firms, Increased
while 24% are with wholesalers, and 12% are employed by
companies operating in the transportation and warehousing
services sector.

2015 2016 2017 2018 2019

60% and counting
Source: Peerless Research Group (PRG)
Few would argue the importance of robust, reliable soft-
ware platforms in today’s e-commerce, omni-channel ware-
Approximately, how much will your company
houses. According to this year’s survey, 60% of companies
spend on supply chain software for your
are using more materials handling software than they did
operation including license, integration
just two years ago (up from 49% in 2018). Forty-nine per- and training in the next 12 months?
cent of firms say their use has stayed the same (down from
50% last year) and just 5% say they’re using less software $2 million or more 1%

than they did in 2017. $1 million-$1.9 million 13%

Of the various types of software designed to streamline
$500,000-$999,999 6%
warehousing operations, most companies (67%) rely on
WMS, while 33% use supply chain management and planning $100,000-$499,999 29%
platforms (up from 15% in 2018). And, 26% of survey respon- Less than $100,000 51%
dents have implemented transportation management systems
(TMS)—a drop from 38% in 2018. Labor management soft-
ware (LMS) is also seeing lower usage rates, with just 17%
Plan to spend
using these platforms now, compared to 32% in 2018.
Median Average
When asked how much money their companies plan to
spend on supply chain software (including license, integra- 2015 $144,444 $679,220

tion and training) over the next 12 months, 51% of readers

pinpoint that number at about $100,000. Twenty-nine per- 2016 $88,680 $472,900

cent will spend between $100,000 and $499,999; 6% say

$500,000-$999,999; and 13% will spend $1 million to $1.9 2017 $91,010 $504,630

million. And, 1% of firms plan to spend more than $2 million

on supply chain software in 2019. 2018 $128,570 $473,770

This brings the average spend for 2019 to $431,160 (down

2019 $100,000 $431,160

Source: Peerless Research Group (PRG)

mmh.com MODERN MAT ERIA L S HA NDL ING / J u ly 2019 31

MODERN reader survey

How long did it take for you to realize from $473,770 in 2018) and the 2019 median spend to
a return on your WMS investment? $100,000 (versus $128,570 last year). These purchase expec-
tations have slowly trended downward since 2015 (with the
Less than 6 months 7% exception of 2017, when tech investment increased), likely
6-12 months 20% because many companies now have the core technology in
12-18 months 22% place to at least run baseline operations.
More than 18 months 15%
We haven't realized our
return yet/Don't know 36% Older systems still work
In reviewing this year’s software survey results, Ian Hobkirk,
president at Boston-based Commonwealth Supply Chain
Advisors, didn’t pick up on anything “unusual or out of
Source: Peerless Research Group (PRG)
whack” with the findings. Zeroing in on the questions that
asked how long companies have had their WMS and TMS
How would you best describe
applications in place, he says there’s a clear divide between
your company’s adoption of technology
companies that have just put their systems in place and
for your materials handling procedures?
those that are still using 15- to 20-year-old platforms.
8%
“That’s not going to change anytime soon,” says Hob-
6%
kirk. According to the survey, 8% of respondents have had
Innovators 10%
their WMS applications in place for a year or less, while
4%
33% have been using their systems for five years or less.
15% 2015
That means 41% of all readers have WMS platforms that
2016
2017 are less than five years old. At the other end of the spec-
14%
2018 trum, 20% rely on WMS solutions that were installed more
13% 2019 than 15 years ago.
Early adopters 8% Asked how long their current TMS solutions have been
23% in place, 13% of readers say less than a year and 37% have
16% been using their systems for 1 to 5 years. Seventeen per-
cent of companies have had their TMS platforms in place
41% for 15+ years. “You don’t see a lot of companies replacing
41% systems they installed 15 years ago, but according to the
Cautiously embrace change 43% survey, a good portion of them have replaced the ones they
47% had in place for less than 10 years,” says Hobkirk. “That’s a
39% pretty interesting trend that’s probably not going to change
anytime soon.”
17%

24% Where’s the ROI?

Take wait-and-see approach 19% For many companies (36%), return on investment for
13% WMS software is a nebulous benchmark that they either
13% haven’t realized yet or simply aren’t keeping track of.
Twenty-two percent of readers say they realized a return
20% on their WMS investments within 12 to 18 months, while
16% 20% say 6 to 12 months.
Slow/Among last to For TMS, 21% of readers surveyed say they haven’t real-
20%
adopt technology
13% ized their return on investment for their software yet, or that
17% they don’t know whether they have or not. Twenty-five per-
cent saw an ROI for TMS of 12 to 18 months, while 25%
Source: Peerless Research Group (PRG)
say it took 6 to 12 months.

32 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG mmh.com

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MODERN reader survey

What is your company's status regarding Hobkirk says these results validate what most of the
the adoption of Cloud computing? industry already knows: that there’s faster ROI in TMS
18% Not sure of 25% compared to WMS. “TMS tends to be less risky and less
company’s interest disruptive for companies to implement,” he says. “You’re
12%
seeing a faster ROI there that is completely believable,
Not an option for us 10% and that’s primarily because TMS lends itself better to the
31%
Currently evaluating/ 18% Cloud-based model.”
will be evaluating
within 12-24 months Looking at materials handling technology as a whole,
48% Hobkirk says the study reveals a reader base that’s will-
39%
Now run ing to make investments to meet customers’ demands
Cloud-based applications and to continue growing. This year, for example, 15% of
companies label themselves as “innovators” and 16% call
themselves “early adopters.” Another 39% are cautiously
embracing change, while 13% are taking a “wait-and-see”
2018 2019
approach to technology.
Source: Peerless Research Group (PRG)
“There’s a lot of new technology out there right now,”
says Hobkirk, “versus, say, 10 years ago, when I really
What challenges have you experienced
wasn’t impressed with the pace of innovation.” He points
or would you anticipate when adopting
to mobile autonomous robots, AutoStore, and other
or implementing materials handling
software applications? goods-to-person picking systems as just a few of the
innovations that companies are starting to think about.
Compatibility with 33%
“They’re neat concepts,” he says, “and people are fasci-
existing systems 40%
nated by them.”
Lack of resources to 22%
According to the survey, 13% of companies are using
implement, manage, maintain 34%
Big Data, while 11% are evaluating or considering it. And,
34%
User acceptance 10% are using artificial intelligence (AI) in their operations;
33%
17% have deployed Internet of Things (IoT) technology; 7%
20%
Vendor technical support are using blockchain in their operations; and 9% are using
33%
machine learning (ML).
Integration with existing 36%
Hobkirk, who works closely with warehouse and DC
software applications 32%
managers to implement technology to streamline their
33%
Substantiating ROI operations, says very few are adopting advanced options
29%
like AI, IoT, robotics and ML. “I’ve probably had one block-
Compatibility with 25%
chain conversation in the last 18 months,” says Hobkirk.
our host/legacy systems 28%
“It’s not that blockchain isn’t valuable, it’s just that for the
23%
Performance issues most part it’s not on our radar yet.”
25%

31%
Total cost of ownership In the Cloud
24%
With Cloud computing gaining momentum in the supply
Whether our process 33%
chain management space, 48% of readers say they’re run-
efficiencies will improve 24%
ning Cloud-based materials handling applications (up from
Corporate/management 13%
39% in 2018). And, 18% are currently evaluating (or will be
approval 22% 2018
evaluating) Cloud-based applications over the next 12 to 24
23% 2019
Funding months, and 10% say it’s not an option for their companies.
22%
The biggest increase in Cloud-based adoption occurred
Whether it will truly lower our 23% with WMS, TMS, labor management systems (LMS)
supply chain operational costs 20%
and slotting. Usage of Cloud-based order management or
Source: Peerless Research Group (PRG) planning is at 64% for 2019, up from 48% last year.

34 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG mmh.com

 MODERN reader survey

For which initiatives is your company using

According to the survey, 23% of your supply chain management software application?
readers are considering applications
Inventory visibility 65%
that manage or collect data on lift
truck fleets, while 34% are interested Demand planning 65%
in applications that monitor systems,
manage information or predict system Procurement 65%

failures for their automated ware-

Collaboration with vendor/suppliers 61%
house equipment.

Order management 48%

What users want
From their supply chain manage- Manufacturing 48%
ment software, most companies
Collaborative forecasting,
are looking for inventory visibility planning and replenishment (CFPR) 36%

(65%), demand planning (65%), pro-

e-commerce fulfillment 32%
curement (65%) and better collabo-
ration with vendor/suppliers (61%). RFID Integration 29%
Other goals include better order
management, more streamlined Upgrade of existing package 23%

manufacturing processes, and more

Customer relationship management (CRM) 19%
collaborative forecasting, planning
and replenishment.
Event management 16%
When asked what obstacles
they’ve faced when adopting materi- 19_1360_MMH_JUL Mod:Source:
June 5,Peerless
2019 8:20Research
AM Group (PRG)
Print: 06/13/19 2:48:23 PM page 1 v7
als handling software, 40% of com-
panies say their top concern is compatibility with exist-

π
ing systems (compared to 33% last year). Thirty-four
percent cite a lack of resources to implement, manage
and maintain as their biggest issue, while 33% say user
acceptance is a key challenge. Other concerns include SHIPPING SUPPLY SPECIALISTS

integration with existing software applications (32%),

sustaining ROI (29%), compatibility with host/legacy HUGE POLY BAG SELECTION
systems (28%) and performance issues (25%).
“Lack of resources to implement is really much more
pronounced today than it has been in the last couple of
years,” Hobkirk says. “From a staffing perspective, every-
body’s hiring and fighting over the same people. It’s a good
time to be looking for a job.”
Looking ahead, Hobkirk says that as e-commerce
becomes a bigger and more prevalent force, more compa-
nies will be looking to incorporate packing technology
ORDER BY 6 PM FOR
into their warehouses and DCs. “Too often, companies SAME DAY SHIPPING
focus on improving the picking process while ignoring
the packing process, and the labor that’s being allocated
to it,” says Hobkirk. “Cartonization, picking directly to
the shipping container, and motion weight scales just
don’t get as much discussion, but they can all produce
just as good of an ROI—or better—than simply fixing the COMPLETE CATALOG
picking process.” 1-800-295-5510 uline.com
mmh.com MODERN MAT ERIA L S HA NDL ING / J U LY 2019 35
MODERN special report
Top 20 supply chain
software suppliers
The technology that drives today’s supply chains is
getting stronger, better and faster thanks to an innovative
group of suppliers pushing the envelope.
W
BY BRIDGET MCCREA, EDITOR AT LARGE
hether they’re getting shipment alerts, managing
warehousing inventory, doing demand forecasting, or
using analytics to make good decisions, you can bet
the warehouse and logistics personnel managing these
tasks are using software to get the job done.
Be it a transportation management system (TMS)
for connecting to carriers, a warehouse management
system (WMS) for orchestrating inventory within the
four walls, or a broader enterprise resource planning
(ERP) solution that incorporates many functions,
the technology that drives the supply chain is getting
stronger, better and faster every year.
As supply chain becomes a bigger priority for com-
panies of all sizes, the need for software that supports
and streamlines this important business component
has also grown. With e-tailers like Amazon pushing
the envelope on same- and next-day shipping, e-com-
merce sales skyrocketing—consumers spent $504.6
billion online last year, a number that’s expected
to hit $735 billion by 2023—and many companies
still using old or manual-based systems to manage
warehousing, fulfillment and distribution, the supply
chain management (SCM) sector continues to climb
steadily every year.
Made up of supply chain planning (SCP) and sup-
ply chain execution (SCE) software, SCM is still led
by the world’s largest software developers, although
36 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G
a few smaller, scrappier players are beginning to chip
away at those larger players’ market share. According to
an annual report from Gartner on the worldwide rev-
enue of the supply chain software market, in 2017 and
2018, the top four suppliers maintained their positions
and order, with SAP, Oracle, JDA and Infor claiming
those spots on Gartner’s list.
Descartes Systems Group moved up a notch to fifth,
with Coupa on its heels in sixth (up from seventh last
year). This year’s fastest-climber was Jaggaer, which
enters the Top 20 chart at No. 7, followed by Manhat-
tan Associates (which dropped three spots from 2017),
WiseTech Global (up one notch), and Epicor, which
descended by two places over 2017.
In pursuit of growth
Balaji Abbabatulla, Gartner UK’s senior director of
product management research for SCM software,
says Jaggaer’s leapfrogging can be traced to the spend
management solution provider’s 2017 acquisition of
BravoSolution, a maker of global strategic procurement
platforms and No. 18 on last year’s list. The combined
company now has 1,850 customers connected to a net-
work of 4 million suppliers in 70 countries, according
to Jaggaer.
According to the Top 20, the SCM growth leaders
are E2open (with 54% growth from 2017 to 2018),
mmh.com
 Top 20 supply chain management software suppliers
SCM (SCE, SCP, Procurement) Total Software Revenue

2017 2018 MES/

No. Supplier Revenue Revenue SCP WMS MRP TMS Procurement Website

1 SAP 3,284.6 3,789.7 x x x x x sap.com

2 Oracle 1,651.9 1,716.7 x x x x x oracle.com

3 JDA Software 720.0 781.1 x x x jda.com

Infor Global
4 299.9 318.1 x x x x x infor.com
Solutions
Descartes
5 211.7 240.2 x descartes.com
Systems Group

6 Coupa 160.6 226.5 x coupa.com

7 Jaggaer 182.2 225.5 x jaggaer.com

Manhattan
8 224.9 215.5 x x x manh.com
Associates

9 WiseTech Global 139.3 212.8 x x wisetechglobal.com

10 Epicor 156.3 175.0 x x x x epicor.com

11 e2open 109.6 168.5 x x x e2open.com

12 Basware 137.2 139.1 x basware.com

13 BluJay 112.2 126.0 x blujaysolutions.com

14 GEP 95.4 121.3 x gep.com

15 IBM 117.9 119.6 x x ibm.com

16 Kinaxis 101.5 118.9 x kinaxis.com

17 IFS 67.9 96.3 x ifsworld.com

18 HighJump 81.5 84.3 x x x highjump.com

19 Logility 68.9 74.8 x logility.com

TMC
20 67.5 74.7 x mytmc.com
(C H Robinson)
Top 20 total 7991 9024.6

Other vendors 4575.9 5,107.9

Total 12,566.9 14,132.5

Revenue listed in millions of USD.
Source: Gartner

mmh.com M O D E R N M AT E R I A L S H A N D L I N G / J u ly 2019 37
MODERN special report

WiseTech Global (53%), IFS SCE (up from $3.98 billion in

SCP total software revenue
(42%), Coupa (41%) and Apt- 2017), $4.95 billion in SCP
tus (40%). Rounding out the No. Supplier 2017 2018 (versus $4.45 billion), and $4.80
growth leaders list were Trade- 1 SAP 1392.7 1606.1 billion in procurement (up from
shift (28%), GEP (27%), Sovos 2 Oracle 554.4 598.3 $4.13 billion) software in 2018.
(26%), Ivalua (25%) and Jag-
3 JDA Software 501.4 518.8
gaer (24%). Using Cloud to deliver value
4 Kinaxis 101.5 118.9
“When Jaggaer bought According to Abbabatulla, the
BravoSolution it grew in terms 5 e2open 70.5 109.5 push to adopt Cloud-based
of revenue and got into the top 6 Infor Global Solutions 69.0 72.5 SCM solutions continues to
10 SCM ranking,” says Abba- 7 Logility 63.1 71.6 drive growth in the SCM sec-
batulla. “Outside of that, there 8 Epicor 63.3 68.7 tor, where he says the “Cloud
weren’t any real significant 9 IFS 40.2 56.4 native” vendors are dominating
shifts between 2017 and 2018.” 10 OM Partners 49.7 55.0 the market.
He’s keeping an eye on Coupa, Revenue listed in millions of USD. Source: Gartner
“Pretty much all of the top
a business spend management growth leaders are Cloud-native
(BSM) provider that’s on a spending spree of its own, having vendors, so there is no surprise that Cloud continues to domi-
just acquired contract lifecycle management provider Exari In nate,” says Abbabatulla, who notes that Cloud alone doesn’t
May. “Coupa continues to grow faster than most other vendors guarantee a vendor’s growth. “It’s about how these vendors are
in the top 10 right now,” says Abbabatulla, “and probably has using the Cloud to deliver value, and how they’re going about
the highest growth rate of the group.” doing that.”
He points to E2open and WiseTech Global as the two high-
By the numbers fliers in the Cloud-based SCM category for 2018—a trend that
In terms of total software revenue for SCE, SCP and pro- will likely continue this year. The common thread across the
curement, SAP ranks at the top of the list with $3.79 billion two, he says, is the ability to seamlessly expand the set of fea-
in revenue—up from $3.28 billion in 2017. Breaking that tures they offer customers. Having a single, unified experience
number down further, the through which vendors deliver
software maker sold $661 SCE total software revenue a number of features that cus-
million in SCE, $1.6 billion tomers can easily add onto their
in SCP, and $1.52 billion in No.. Supplier 2017 2018 existing systems, for example,
procurement software. 1 SAP 571.5 660.9 is very alluring to companies
Oracle’s SCM revenues 2 Oracle 504.7 521.5 operating in the fast-moving dis-
rose from $1.65 billion in 3 Descartes Systems Group 211.7 240.2 tribution environment.
2017 to $1.72 billion in 2018, “When companies can easily
4 WiseTech Global 139.3 212.8
with total SCE software rev- add on without going through a
5 Manhattan Associates 205.1 196.1
enue of $521 million, SCP at whole implementation-deploy-
6 Infor Global Solutions 183.0 192.3
$598 million, and procure- ment-integration process, and
ment at $676 million. Next 7 JDA Software 165.6 182.8 all while using the same set of
on the list is JDA, which saw 8 BluJay 112.2 126.0 features they’re already using,
its annual total SCM software 9 Epicor 90.5 101.2 it’s a pretty compelling argu-
revenues rise from $720 mil- 10 HighJump 81.5 84.3 ment,” Abbabatulla points out,
lion to $781 million. Infor Revenue listed in millions of USD. Source: Gartner noting that this approach is not
sold $318 million in SCM limited to Cloud-native vendors.
software, with Descartes, Coupa, Jaggaer, Manhattan Asso- For example, he says IFS is a good example of an on-premise
ciates, and WiseTech Global all falling into the $212 million software provider that’s added Cloud to its delivery options, but
to $240 million annual revenue range. that’s still largely focused on its traditional delivery method.
Cumulatively, SCM software providers sold $4.38 billion in “All of IFS’ core customer segments are traditional engi-

38 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
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MODERN special report

neering, aeronautics and man- Procurement total right now,” he says. “Clearly,
ufacturing industries that are software revenue there are still a lot of SCE
heavily [invested in] on-prem- legacy applications in use, with
No.. Supplier 2017 2018
ise solutions,” Abbabatulla companies continuing to use
1 SAP 1,320.4 1,522.7
explains. And while IFS’ on-premise software that’s been
growth has largely focused on 2 Oracle 645.9 676.4 in place for 25 or 30 years.”
developing targeted solutions 3 Coupa 160.6 226.5 That landscape is beginning
for its core industry segments, 4 Jaggaer 102.5 225.5 to shift as companies invest
the company is now taking 5 Basware 137.2 139.1 in more robotics, automation
a multi-pronged approach to 6 GEP 95.4 121.3 and IoT-enabled equipment,
its business: deliver better 7 IBM 83.1 93.4 all of which requires the sup-
value to on-premise custom- 8 Zycus 65.6 73.0 port of more modern, state-of-
ers while also adding Cloud 9 Sovos 53.8 67.5 the-art software systems than
options to its lineup. “The 10 Infor Global Solutions 48.0 53.3 those made in the 1980s and
Cloud isn’t a major growth Revenue listed in millions of USD. Source: Gartner 1990s.“As IoT becomes more
factor for IFS,” he adds, “but prevalent, and with the increas-
it does help the company make it easy for customers to use ing use of robots,” Abbabatulla says, “we could see a higher
more features with minimal additional effort.” emphasis placed on good decision making in a sector where the
focus has been more on cost reduction, and less on investing in
Investing in the future developing new systems for the future.”
Looking at this year’s Top 20 numbers, Abbabatulla says the
overall SCM market grew by about 12.5% between 2017 and Making the list
2018. Of the three segments that SCM covers, procurement This is the 18th time Modern has reported on the supply
saw an uptick of 16.3%, followed by SCP at 10.9% and SCE chain software market from a business standpoint. Although
at 10.1%. “Procurement pulled the growth rate up overall,” we initially focused on the top providers of WMS solutions,
he says. At least some of that uptick can be traced to the the lines between supply chain execution and supply chain
ongoing push for digitizing the procurement process, and planning providers are no longer clearly drawn; enterprise
the fact that buyers have long relied on manual processes to resource planning (ERP) providers supply WMS and supply
run their departments. chain execution providers offer planning and optimization
“Not a lot of procurement processes were digitized to begin solutions. Companies are increasingly looking to integrate
with, so many procurement departments started off with a their procurement activities into their manufacturing, distri-
clean slate,” Abbabatulla points out. “As a result, they didn’t bution and transportation strategies.
have the challenge of replacing legacy solutions. They just went For that reason, Modern partners with Gartner to create this
right into it saying, ‘OK, we have a bunch of manual processes. list. Our starting point is Gartner’s annual list of the top supply
We need to digitize them, so who has the best solution?’” chain management providers. It’s a numbers game and not a
Procurement software is also getting a boost from the addi- popularity contest. The rankings are based on Gartner’s esti-
tion of direct spend management to its menu of options. Tradi- mates of a provider’s annual sales for 2018. Meanwhile, Gart-
tionally dedicated to managing indirect spend, these programs ner’s estimates are based on revenues related to supply chain
have broadened out to where they now help companies orches- management software and not a company’s total revenues.
trate more strategic sourcing activities. Admittedly, this is an imperfect science. Gartner, for
“If indirect sourcing led to the current market size—which instance, strips out hardware sales from its estimates. What’s
incidentally, outgrew SCE in 2018 and will grow faster than SCP more, Gartner does not follow the warehouse control systems
in the next few years,” Abbabatulla predicts, “then we’re going to (WCS) or manufacturing execution system (MES) spaces for
see even more growth ahead as more companies use software for the purposes of its chart.
direct sourcing.” Finally, it does not include SCM suppliers that focus on spe-
Abbabatulla also sees potential ahead for SCM developers, cific verticals. That said, it is an apples to apples comparison to
and SCE in particular. “SCE is in a really interesting place previous years.

40 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
Sponsored by Kelley Entrematic MAKING THE CASE REPORT

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balancing speed with efficiency and that incorporate advanced functionalities COVERED IN THIS REPORT:
safety is no easy task. Driven by the uptick in are becoming more popular.
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an efficient, safe dock
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unemployment rates that are currently at workforce turnover is driving those needs
50-year lows, product-oriented companies just as e-commerce is on track to exceed • Making loading docks safer
across all sectors are looking for new ways $712 billion by 2022 (up from $506 billion and more productive
to streamline their dock operations. in 2018), according to Forrester Research. • How all-in-one master
Seeking higher facility throughputs, “Connecting and sharing data among control panels improve
many of those companies are looking to disparate systems is becoming more and warehouse operations
a warehouse and distribution center (DC) more critical,” says Day, “as more com-
mainstay: the dock door. Both functional panies integrate advanced technology like • Making the case for
streamlining your dock
and fundamental in nature, this threshold collaborative robotics into their workforces.” operations Distribution Center
to and from the loading dock is ripe for a Those easy-to-use systems also have
technological upgrade. In a world where to be able to share data among each other
labor is not only hard to come by, but and batch that data in a way that makes it
where many fulfillment operations rely on very useable in today’s fast-paced e-com- logging device (ELD) mandate creating
temporary workers, any new equipment merce operations. “Driving e-commerce higher levels of accountability in that
must be easy to use and require little or no and automation can be quite difficult with regard—there is simply no room in the
training to operate. some of the older control panels that are schedule for idle time at the dock.
“It’s about squeezing more currently in use,” Day points out. “In many To fulfill these changing demands
productivity out of the same warehouse cases, they require some training for use while streamlining their loading dock op-
footprint,” says John Carroll, Kelley’s and the systems themselves aren’t very erations, companies are replacing older
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Loading Dock Products. Velocity at the All-in-one control panels that require HMI Digital Master Control Panel. In this
docks is also becoming a key concern for no training and that digitize the move- Making the Case report, we explore the
companies operating in the e-commerce ment of dock doors also help carriers who key dock-related issues that warehouses
universe, where companies like Amazon are feeling the pressure of the tight labor and DCs are dealing with as they adapt
and Walmart are both raising the bar on market, fluctuating capacity issues, and to the e-commerce economy and show
same-day and next-day shipping commit- changing regulations like the Hours of how companies can use master control
ments. “Companies need equipment that Service (HoS) rules. With the latter ensuring panels to streamline their docks, improve
provides the highest levels of uptime,” that no drivers are on the road longer than safety, and meet today’s shrinking
says Carroll, “while also managing the they should be—and with the electronic delivery time expectations. •
extra velocity in a very safe manner.”
Enhancing safety, picking up speed
With a greater focus being placed on
Go to: www.mmh.com/
equipment that’s easy to use and stream- kelley0719 for a full report.
MODERN information management

WES EVOLVES BEYOND

the four walls
Warehouse execution systems are becoming more important
to automated warehouses that need to manage machines,
people and inventory resources against a high-velocity stream of orders
and tight delivery commitments. WES can be more than a one-function
solution for orchestrating zones as well as operate as
a complex hybrid that paces work.

BY ROBERTO MICHEL, EDITOR AT LARGE

W
arehouse execution system
(WES) software has emerged
as a means for automated dis-
tribution centers to fulfill a high-velocity
order mix while hitting tight delivery
requirements.
A core WES function that helps
with this challenge is known as “wave-
less” order releasing in which orders
are dropped to the floor on a continu-
ous basis, letting the WES dynamically
orchestrate machine, labor and inven-
tory resources against order require-
ments. This differs from how most
warehouse management system (WMS)
solutions have traditionally processed
orders in pre-planned chunks of work
known as waves.
However, WES is more than a niche
solution for waveless. As suppliers point
out, WES can integrate with transporta-
tion updates to keep execution in bal-
ance with dock activity and logistics,
while WES is also evolving in terms of
analytics. In short, it’s not just a one-
trick pony, but an increasingly impor-
tant layer of software that blends key
aspects from the WMS level with the
type of machine awareness that ware-
house control system (WCS) software
traditionally has governed.
Roger Counihan, vice president of
sales with Fortna, a professional ser-
vices and WES provider, agrees that
WES has attracted interest with its
ability to more efficiently orchestrate
order fulfillment within a DC. With-
out WES and reliance on more tradi-
tional waves that group static blocks
of work together, he notes, a sine wave
pattern emerges to efficiencies, with
good efficiency at the start of a wave,
but a falloff as the wave winds down.
To compensate, operations often need
to throw more automated equipment
or people at fulfillment to get the
throughput they need.
“That is a big part of what’s driving
people to WES,” says Counihan. “It
allows them to be more efficient with
less investment.”
What tends to be forgotten in this
focus on order releasing under WES
is that an effective WES is also tak-
ing in updates from transportation
management system (TMS) solutions
or electronic data interchange (EDI)

42 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com

and dynamically adjusting the pace of
work and priorities based on changes in
arrival times or dock door assignments.
Counihan says: “We look at our WES
as enabling pull-driven flow, and as part of
that, it is looking at the outbound picture
and assessing, ‘how do I maximize what is
flowing out of the building so that orders
get to customers on time and accurately?’”
Similarly, on the inbound side, an
effective WES needs to be able to inte-
grate with data from enterprise resource
planning (ERP) systems or EDI
updates, in particular advance shipment
notices (ASNs), to optimize the receiv-
ing and put away process, and look for
opportunities to crossdock inventory to
fill customer orders. “On the inbound
side, [WES] is absolutely looking at
when it is [receiving] work and incom-
ing product is going to be available, and
ideally, when can you crossdock in one
simple move,” says Counihan.
The WES concept
There are different vendor approaches
to WES, and different ways vendors
entered the market. Some of the leading
WES providers have a heritage as ware-
house integrators who developed WCS
and evolved those into WES solutions.
mmh.com
WES handles order planning and intelligent release
REAL-TIME INTEGRATION
Robot API
Lights API
Pick carts Mobile robots
with lights
A few companies that began with WES
software have been purchased by large
warehouse automation providers, while
some WMS and supply chain execution
software suite providers have come out
with WES capabilities.
While changes to outbound ship-
ments should be passed on to any WES
or WMS solution, it’s also important for
WES to have effective integration to
inbound shipments, says Ryan Sheehan,
CEO and co-founder of Invata Intra-
logistics, a WES provider. “Integration
to transportation data is also important
on the inbound side, where a WES’s
optimization algorithms start creating
flow for the overall facility. Visibility into
incoming shipments and yard manage-
ment is becoming critical to what we are
doing,” he says.
Invata believes in providing inte-
grated solutions, rather that niche
systems, says Sheehan, so it has some
M O D E R N M AT E R I A L S H A N D L I N G / J
Lights API
Native voice
Voice terminals Put walls/
pick to light
Source: Softeon
parcel manifesting and TMS functions
it offers, or it can integrate WES with
whatever TMS a user company might
have. “Much of our development is
around deep integration to the transpor-
tation management side to be able to
make decisions based on the ship meth-
ods, service levels and the overall cost to
get that unit delivered to the customer
on the promise date,” he says.
WES differs from the more pre-
planned or batch approach of most WMS
solutions, explains Ryan. “The WES
wants to be looking at things very deter-
ministically on a sub-second basis and
cranking complex optimization out,” he
says. “It is looking across inventory, the
materials handling equipment and all of
the considerations on the outbound side
to meet the customer promise dates.”
WMS vendors who’ve developed
WES capabilities point out that inte-
gration to TMS and yard schedules is
u ly 2019 43
MODERN information management

nothing new for supply chain execution
software vendors with integrated WMS,
TMS and yard management systems
(YMS).
“There is a real need to understand
everything affecting the edge of a DC
operation, whether that is what is hap-
pening at dock doors or in the yard,
and above that, the overall logistics
flow from port or supplier to DCs for
receiving,” says Sean Elliott, chief
technology officer for HighJump Soft-
ware, a supply chain execution system
vendor whose WMS has what it calls
“automation aware” WES features.
“On the outbound side, the DC’s sys-
tems need an accurate understanding
of what the pickup and arrival times
will be. This knowledge is absolutely
critical to more flexibly managing
resources and work.”
There are multiple ways to get logis-
tics updates into a WES/WMS, says
Elliott. With HighJump’s customers,
there are TMS and YMS schedules
and updates, and it’s also possible to
integrate with carrier systems or EDI
data. HighJump also has a module for
linking to telematics updates from car-
riers. By integrating logistics updates
to WES, the solution can re-optimize
assigned tasks or resources.
“If we know that a truck is held up in
transit and it’s going to be another hour
or two hours before it arrives, the opti-
mization algorithm [in the WES func-
tion] is immediately going to account
for that,” says Elliott. “The reality is that
just like warehousing operation dynam-

Balemaster balers ics change on a regular basis, so do

®

transportation dynamics.”
put more green in your pocket.
If you are not baling your waste now, or if you are baling manually, then Overall flow
®
you’re spending too much time handling empty cardboard boxes. Balemaster Dan Gilmore, chief marketing officer at
®
balers can do the work for you. Balemaster wide-mouth auto-ty balers send Softeon, a supply chain software vendor
money to your bottom line in many ways. Here are just two:
1. Conventional hand tying takes 7 to 10 minutes per bale. But Balemaster
® whose WMS has WES capabilities,
auto-ty balers process cardboard waste into a dense bale that is agrees it is important to link WES with
automatically and securely tied in less than 30 seconds. the latest transportation updates so
®
2. Balemaster balers produce bales with the highest density per cubic foot. that the WES logic can adjust the flow
So there’s more material per volume than any other baler. This reduces
of work. One key benefit from WES,
annual baling wire costs and maximizes recycling revenue per load.
®
Balemaster balers are engineered to save energy, improve efficiency, reduce he adds, is how it supports pull-driven
wire usage, and lower maintenance costs. Being green is good business. But work that hits customer service levels,
pocketing green is even better. while looking for opportunities for effi-
Don’t crunch the numbers any other way. ciencies from pick density, especially
earlier in a shift.
“As the day proceeds, more and
More than a Source. A Resource. more of it starts to become a factor of
service commitments, and making sure
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44 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
 MODERN information management

the parcels that are supposed to get on telematics on the truck and real-time reassign a gate to a different flight if
the truck make it there on time to meet integration to carrier updates can another flight is delayed. “If a DC gets
delivery commitments,” says Gilmore. be leveraged by WES capabilities to a digital communication that a truck
“I think now [with WES] we’ve got a reshuffle work, reassign workers, or is going to be two hours late, [WES]
vision for warehousing that looks more make other adjustments, much like can do some planning around that,” he
lean-oriented and pull-driven than the systems used in airports today can says. “Supply chain execution systems
systems of the past.”
Gilmore also believes a WMS with
WES capabilities is an apt solution for
omni-channel DCs that want to process
some orders in waves, but others under
waveless. While waveless can work well
with e-commerce orders or other small,
parcel-sized orders that can draw on a
large order pool to find pick efficiencies,
processing work in waves remains effec-
tive for more traditional business-to-busi-
ness orders shipped on pallets on specific
trucks that might entail a preferred load-
ing sequence, Gilmore says.
Under either a waveless or waved
methodology, says Gilmore, WES is
going to require less manual planning
and intervention than traditional WMS
because WES uses its visibility into
Problem solved.
throughput and resource availability to
Warehouse fulfillment shouldn’t be complicated.
make decisions. “You want a system that
is automatically reacting—not one that
Superior results for e-commerce, retail,
takes all kinds of manual processes and PROVEN. wholesale and omnichannel customers.
intervention,” he says.
The whole notion of an “in the four 30% improvement in efficiency.
walls” system is becoming outdated SUCCESSFUL. Record-setting peaks.
under digital supply chain initiatives
that involve systems with WES capabil- SIMPLE. Flexible, scalable and easy to use.
ity, says Scott Deutsch, Americas presi-
dent for Ehrhardt Partner Group (EPG),
VARGO® is the only company with COFE®, the warehouse execution system software
a vendor of supply chain software that
that does for fulfillment what Lean did for manufacturing.
includes WES functionality. “A ware-
Learn more at 877.876.6384 or VARGOsolutions.com.
house execution system takes in so many
digital touchpoints, that the four walls of
a DC don’t exist figuratively any longer,”
Deutsch says. “WES capability is all
about being able to deal with keeping up
with a digital supply chain.” Maximizing Resource Utilization
For example, says Deutsch, if a VARGOsolutions.com
carrier truck gets stuck in traffic,
Rubik’s Cube® is used by permission of Rubik’s Brand Ltd. www.rubiks.com.

mmh.com M O D E R N M AT E R I A L S H A N D L I N G / J U LY 2019 45
MODERN information management

in the digital age now are able to grab the past,” he from WES. “We call
and apply best practices from other says. “Now with Companies mentioned it operational intel-
industries.” Cloud analytics, in this article ligence,” he says. “It
a dynamic view of sits on top of tradi-
Analytics advance data and perfor- • CognitOps tional data sets as
WES solutions also continue to expand mance is taking • Ehrhardt Partner Group (EPG) well as automation
their analytics capabilities. While hold.” • Fortna and robotics data
reports and dashboards are part of most HighJump’s • Highjump Software to provide a total
WMS solutions, what makes today’s Elliott sees a simi- • Invata Intralogistics picture. The second
analytics different is that they can be lar trend for WMS/ • Softeon thing about [opera-
constantly refreshed with current data, WES analytics, fed • Swisslog tional intelligence] is
says Deutsch. “The downfall of dash- by both traditional that it interacts pretty
boards is that they tend to be static— WMS data, and real-time status of both heavily with our labor solution.”
performance at a moment in time in machinery and other resource activity The need for better DC analytics and

How WES interacts with mobile robots

W arehouse execution system (WES) solutions can
either directly control or orchestrate the activity of
automated materials handling systems, either traditional
automation like conveyors or the new kid on the block:
autonomous mobile robots (AMRs). That raises the issue
of the relationship between WES and AMRs—how do the
two systems typically interact, and how does the integra-
tion work?
According to WES providers, the integration to the soft-
ware that controls AMRs is much like integration to other
automation systems, which may have some inventory
under their control, like an automated storage and retrieval
system (AS/RS). Just like WES can coordinate with an
AS/RS or shuttle, WES can be used to coordinate order
requirements or other factors like inventory replenishment
with an AMR platform, says Sean Elliott, chief technology
officer for HighJump Software, which offers a warehouse
management system (WMS) with WES capabilities.
Initially, explains Elliott, the integration between WES
and robotics has tended to be a more streamlined ex-
change of order requirements coming down from WES
(or a WMS with WES functionality) to the robotics plat-
form, and the robotics software sending back data on
completed tasks and inventory moves/changes, explains
Elliott. This is more of a “black box” style of integration,
in that WES and the robotics software will exchange data
and coordinate around material flow, but the WES isn’t
controlling each robot directly, or governing the position-
ing of inventory within the robotic zone of the warehouse.
“We’ve been very impressed with the robotics space and
have good relationships with a variety of vendors,” says
Elliott. “Today what we see is mostly a black-box style inte-
gration, in large part because one of the big value proposi-
tions of robotics is ease of implementation and rapid return
on investment.”
However, says Elliott, the link between WES and ro-
botics platforms could evolve into a tighter relationship
in which an AMR platform would still control the robots,
but the WES would have added more detailed visibility
into what the robot resources are doing. This more bi-
directional, real-time style of integration between WES and
robotics could allow for better coordination around the al-
location of human labor or other resource decisions, says
Elliott. “I think there is a lot of value that could be driven by
a tighter coupling and more data sharing between the two
universes,” he says.
WES solutions must have effective integration mecha-
nisms with multiple types of automated materials han-
dling systems, with robotics including goods-to-person
mobile robots or collaborative picking arms being no
exception, says Stuart Dunn, product manager for cus-
tomer service, software and controls for Swisslog.
Since Swisslog offers a WES solution called SynQ as
well as various robotics solutions, Dunn says that WES
can integrate with most any type of system, but has tight,
native integration with Swisslog robotics solutions such
as its good-to-person robots that bring goods on rolling
shelves to a light-driven pick station, or its collaborative
picking arms.
The advantage of having a common solution for WES
and robotics, says Dunn, is that rather than simply ex-
changing data between key systems, the user company
has one cohesive system to manage and improve on
order fulfillment. “It allows you to have one system for
visibility and for continuous improvement of the opera-
tion,” says Dunn.

46 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
the multiple systems in use within
DCs is also giving rise to some new
analytics specialists. One of these is
CognitOps, which offers a Cloud-
based platform that uses data from
systems such as WMS, WES and

o d u c i n g
Intr
WCS to make predictions and provide
decision insights for managers.
Alex Ramirez, co-founder of Cog-
nitOps, says the CognitOps platform
takes in data from these multiple
systems to provide insights on factors
including labor optimization; how to
eliminate bottlenecks and idle time;
how to stage inventory in the DC;
and how to harmonize order release • IoT for Your Loading Docks
between WMS and WES. “Being able • Monitor Dock Activity and Analytics
to bring in that data to say, this is how • Receive Text and Email Notifications
you should use your equipment, posi-
tion inventory, release orders and bal-
ance your staff—across all the silos—
are the fundamental questions we are
answering with our platform,” he says.
Some WES solutions use simula-
tion for tactical decision support.
Softeon, for instance, developed sim-
ulation for insights into longer-term
process improvements in a DC, but
found that same technology could
be leveraged to plan for the next day,
shift or to prepare to execute on a
promotion, says Gilmore.
Such capabilities make WES more
than a narrow engine for waveless, and
add to the total benefit potential of the
solution category. As Gilmore con-
cludes: “I think [WES] will be an eye
opener for the industry in that there is
still so much potential to take costs out
of the DC by maximizing flow, by max-
imizing resources, eliminating lull time
and using that drum beat derived from
customer shipment commitments to
pace the overall work in the DC.”

mmh.com www.LoadingDockSystems.com/iDock
MODERN best practices

NEXT GEN
Supply Chain Conference

NEXT GEN
Supply Chain Conference
NEXTGEN SUPPLY CHAIN
Awards
NEXT GEN
Supply
For our inaugural ChainMedia
event, Peerless Conference
recognized five companies
leading the way in the adoption of new technologies.

NEXT GEN BY GARY FORGER, CONTRIBUTING EDITOR

Supply Chain most

Conference
W organizations are still in the investigation, and
e’ve all heard the buzzwords: Robotics, artifi-
cial intelligence, predictive and prescriptive
analytics, blockchain and digital transformation. In
fact, every day, we read about a new technology that is
going to revolutionize the way business gets done and
supply chains get managed.
Based on the press accounts, it’s easy to think that
every competitor in a given industry is already put-
ting next-generation technologies to work while your
organization is running in last place. But the truth is,
maybe pilot stage; few have actually deployed those
technologies and fewer still have done so at scale.
But, a handful of innovators are putting tomor-
row’s supply chain technologies to work today. Peerless
Media honored these foresighted few at its first annual
NextGen Supply Chain Awards, recognizing the achieve-
ments of early adopters and industry leaders. The award
winners were announced in Chicago at the NextGen
Supply Chain Conference in April.

48 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
 Read on to see what the award winners are doing. And, if
you think your company is leading the way in the adoption
of these technologies, we hope you’ll enter a submission for
next year’s awards later this summer. You can learn more at
nextgensupplychainconference.com.
Robotics: GEODIS
When 3PL GEODIS piloted mobile collaborative robots in its
Indianapolis DC, it wanted to double the
picking productivity of women’s apparel
by its workforce. And that’s exactly what
happened. But as Kevin Stock, senior vice
president of engineering, explains, the ben-
efits didn’t stop there. The initial 30-robot
installation also included:
• working collaboratively with the existing workforce;
• simplifying the job, reducing travel distances, increasing
job satisfaction, and
• reducing training times.
The overall success of the 90-day pilot was so impressive
that GEODIS plans to roll out a total of 175 robots from Locus
Robotics across four locations by mid-2019. Since the launch
of the original pilot in October 2017, a total of 10 million items
have been picked.
Prior to the implementation, order pickers manually picked
items to 50-pound pick carts that they pushed around a
139,000-square-foot area of the 300,000-square-foot facility.
Radio frequency units directed their tasks—definitely an “old
school” approach. However, innovation is a corporate objective
at GEODIS and the concept of using collaborative robots fit
that bill.
According to Stock, due diligence, partner selection and
contracting began in April 2017 at ProMat and was completed
by July. Prep work for the changeover began in August. “There
was some minimal infrastructure needed in the DC to integrate
an electric run for robot changing stations and some drops for
robot induction areas,” says Stock. “Otherwise the physical
setup of our operation didn’t change.”
The teams had to determine the format and number of plas-
tic totes each robot would carry. IT work focused on integrating
GEODIS’s warehouse management system with the robot man-
agement system and creating a digital warehouse map that the
robots would follow.
Add in training time and change management sessions with
the 60 team members who would be involved with the robots,
and the prep work took roughly two months before the October
mmh.com
2017 go live with 30 robots. “We emphasized that the robots
were not there to replace associates, but to improve their pro-
ductivity,” Stock recalls. That effort paid off and the associates
have embraced working with robots.
Today, instead of pushing heavy carts through the picking
area, robots come to the associates. Each associate wears a
Bluetooth badge that communicates with the robot. A green
light on the robot indicates it is waiting for an individual to
perform a pick. A blue light comes on when the robot is moving
to its next location. A pink light indicates it is stuck in a pick
and requires attention. It’s that simple.
If he had to do it again, Stock says he’d pick a time other
than a month before peak to introduce a new technology.
Nonetheless, GEODIS not only survived those challenges, it
continues to expand its use of collaborative robots.
Artificial intelligence: DHL
When it comes to NextGen technologies like artificial intel-
ligence, DHL Supply Chain follows a simple rule: Improve
operations by developing specialized
tools that supplement people. “We’re
trying to develop new tools that allow
people to make better decisions and
improve accuracy,” explains Justin Ha,
director of solutions design at DHL
Supply Chain, the company’s contract logistics division. “At the
same time, we’re using artificial intelligence (AI) to teach ma-
chines how to improve their efficiencies by eliminating touches
and relieving people of tedious tasks.”
DHL has already scored gains using AI in three key areas.
In one DHL operation, people used to evaluate incoming
shipments to determine if extra handling was required. It was
a high-speed, manual process with on-the-fly decision making
that was fraught with the potential for error. DHL now uses
AI and computer vision to evaluate incoming shipments and
determine proper handling for people on the line. Productivity
has increased by as much as 14%.
The accuracy of detecting critical pallet properties has also
increased along with the speed of handling. Just as important,
explains Ha, false positives have been drastically reduced. This
allows DHL to process the inbound loads quicker in an envi-
ronment under enormous time pressure, and have better trace-
ability than the old method of capturing 2D and 3D images.
Artificial intelligence is also at work in a big-picture system
called Resilience 360, a supply chain risk management plat-
form. Risks can derive from a range of events, such as natural
M O D E R N M AT E R I A L S H A N D L I N G / J U LY 2019 49
MODERN best practices
disasters to plant shutdowns. Machine learning identifies
alternative solutions capable of keeping the supply chain up
and running following a disruption. Ha says the alternative
route finder usually takes less than 8 seconds to develop post-
incident alternative delivery routes.
In a third application, DHL Supply Chain uses smart piece-
picking robots with put walls. In this application, a robotic
arm, rather than an associate, picks items and places them in
the selected cubbie. The robot uses machine learning to bet-
ter identify and grasp a variety of items, improving the robot’s
handling and grasp success rate over time.
There may even be opportunity for AI to improve warehouse
management systems, says Ha. DHL has developed an internal
eCommerce Business Intelligent Suite that uses analytical opti-
mization tools to maximize the efficiency of various tasks in the
operation and improve overall warehouse productivity as much
as 15%. AI could make additional improvements by adding
continuous learning and predictive analytics to the suite.
As to the future, Ha says there is room to do more: “As we
become more digitized, we want to be in a position to introduce
AI to more processes. Right now, we’re in the early stages but
we’ll move rapidly down the road from here.”
Analytics: Johnson Controls
Three years ago, the two most common complaints fielded by
the Johnson Controls maintenance team were: “my work area
is too cold (or warm)” and “our
facilities guy says the chiller just
doesn’t look right, but he isn’t sure
what’s wrong.” Thanks to advanced
analytics, that cycle has changed,
explains Vineet Sinha, director of digital solutions business at
Johnson Controls, a leading supplier of HVAC systems and
building controls. “Our Cloud-based analytics platform now
pinpoints what the real problem is rather than focusing on a
chiller symptom that requires imprecise troubleshooting and of-
ten just as imprecise maintenance,” Sinha says. “Furthermore,
we have now connected all key systems in buildings including
security, safety and external attributes.”
Known as the Connected Equipment Program (CEP), the
system uses data from onboard sensors, equipment specifica-
tions and past maintenance records to analyze performance
and drive predictive diagnostics. Customers can access the
Cloud-based platform any time of day from any location. It
can even be accessed by smart phones using a 4G cellular
network. Dashboards offer real-time data and analytics to
50 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G
monitor equipment, identify problems and perform specific,
required maintenance procedures to fix them.
“The result is increased service responsiveness and reli-
ability as well as reduced emergency outages and energy
consumption,” says Sinha. “Condition-based maintenance
greatly simplifies the maintenance supply chain by right-sizing
maintenance parts and optimizing inventory to actual condi-
tions at a location.”
Among the other benefits being realized by condition-based
maintenance is a 65% reduction in the mean time to repair,
a significant improvement given that the company manages
5,000 connected chillers in 37 countries. It is also contributing
to revenue, with a service contract renewal rate of more than
90% for those companies on CEP. “That’s the best metric of
success we have,” he says.
The original program is now undergoing next generation
improvements with the help of artificial intelligence and
machine learning that learns from past condition monitoring.
The goal is high-precision predictions of machine perfor-
mance and efficiency that pinpoint specific maintenance
needs in real time. “We’re enabling this through a proprietary
Cloud platform called the Digital Vault. It is helping connect
diverse building systems and creates insights for buildings
and occupants,” says Sinha.
Blockchain: IBM
There are plenty of ways for the electronic parts supply chain
to be compromised. One is the loss of visibility as parts move
through the supply chain. This could
lead to the replacement of genuine parts
with counterfeits. And then there is the
problem of disputes during the Customs
declaration process. None of these problems are easy to solve.
But for IBM, blockchain is proving itself as a NextGen supply
chain tool of the future to address these issues.
Today, IBM manages about 18,000 suppliers of parts to
clients in more than 170 countries. “Our supply chain is
vulnerable to disruptions that may have a significant impact
on the execution and delivery of products and services,”
explains Tom Ward, AI project leader at IBM. “Having
blockchain infused in our supply chains provides timely,
secure and trusted information about parts and their move-
ments,” he adds.
Several attributes of blockchain make the technology at-
tractive to IBM. To begin, all parties can access the blockchain
ledger. However, each party sees only the parts of the ledger
mmh.com
MODERN best practices
relevant to them. Transactions, which can’t be altered after
the fact, are updated in real time across the blockchain. And
as Gergely Szlovak, cognitive advocacy lead explains, IBM’s
first three pilots proved blockchain works in the supply chain.
Just as important, it resulted in measurable gains.
In the first pilot, IBM worked with hard drive supplier
Seagate to guard against counterfeits. A total of 60,000
Seagate drives move through the IBM supply chain monthly.
The pilot focused on just one part number that accounts for a
significant number of drives. Initial savings to both companies
is estimated at $2.2 million a year due to blockchain tracking.
In addition, blockchain provides a significant mitigation of
risk through improved tracking.
The second pilot focused on collecting real-time visibility
and other asset data about shipments and individual parts
in the IBM supply chain. Disputes about parts in transit for
IBM’s $8 billion worth of systems annually are not uncom-
mon. Blockchain improved parts traceability significantly.
The third pilot was intended to improve and expedite
Customs clearance. Hard benefits included savings to
suppliers of $600 per transaction and an additional $1,000
to IBM, resulting in a 40% cost avoidance just in clear-
ing customs. Meanwhile, use of blockchain increased risk
avoidance by 70%.
“There are still plenty of questions about how blockchain
works in much of the supply chain, says Ignacio Escobedo,
supply chain consultant, “but the pilots show that it is clearly
a reality and not simply a fad.”
Adds Ward: “With blockchain, you know you can trust the
data. And the transparency of transactions for asset manage-
ment is huge. None of that is possible with any other technol-
ogy in the supply chain today. We’ve just started to scratch the
surface with blockchain.”
Digital transformation: Cisco
Most people think of Cisco as a world-class high-tech
company. But four years ago, the company wondered why it
couldn’t also be a world-class logistics company. As Cisco’s
senior director of global logistics, Jack Allen was tapped to
lead the project dubbed Logistics 3.0. “From the beginning,
our objective was to enhance the customer experience, not
make money on the logistics of moving parts around for our
suppliers and customers,” Allen explains.
Not that the whole idea didn’t give him pause. “A digital
transformation of logistics is not just a major undertaking.
52 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G
It fundamentally changes how everything works,” Allen
says. “And we were taking on every aspect of the move-
ment of goods between facilities
throughout the entire Cisco supply
chain. There was more than one
night when I wondered if we could
pull this off.”
Despite those misgivings, Allen and a team of up to 40
volunteers—no one was assigned to the project—did pull
it off. Operational improvements include better visibility
across the supply chain, as well as lower costs and greater
efficiencies. Since the start of the Digital Transformation
initiative, end-customer logistics volume at Cisco has grown
more than 39%, with more than 1,500 customers and part-
ners worldwide now leveraging the capabilities developed in
the Logistics 3.0 program. They can access—at any time—
the status of their order, including expected delivery time.
Furthermore, Cisco acts as a one-stop logistics supplier for
everything from freight insurance to consolidated delivery.
In addition to delivering an Amazon-like customer ex-
perience to industrial customers, new found supply chain
efficiencies, savings and additional revenue are delivering
benefits to Cisco’s bottom line. Better yet, says Allen, those
benefits recur year after year.
In retrospect, the program was hardly a slam-dunk. First,
top management had to buy into the concept, according to
Darren Mallard, senior manager of marketing strategy, who
joined the project part way through. “Management did its due
diligence and set benchmarks that had to be met along the
way. And, we exceeded their expectations,” he says.
As a result of the program, Cisco now has supply chain
innovation centers in Houston, Texas, and Istanbul, Turkey,
where they test and implement new digital technologies that
will drive continued improvements. Today, there is even an
internal talent development angle to Logistics 3.0. Cisco
takes on interns and co-op students from various universi-
ties, works with them over a three-year cycle and rotates
them through third-party vendors in their supply chain.
Globally, 293 students have participated in the program,
with additional students joining each quarter/semester.
And, 92 of them have gone on to become full-time Cisco
employees. “It’s really exciting to see the dreams of a
corporation and of people turned into reality,” says Allen.
“I would do this all over again if asked. It’s one of the most
rewarding things I’ve ever done.”
mmh.com
 Industry News
& Trends
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enhance job performance.

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and resources you need—
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WAREHOUSE: TECHNOLOGY: EQUIPMENT:

• Energy • Automation • AGVs
• Ergonomics • Data Capture • Containers & Totes
• Inventory & Picking • IoT • Conveyors & Sortation
• Lighting • Mobile & Wireless • Lift Trucks
• MRO • Robotics • Loading Dock
• Packaging • Software • Overhead Handling
• Safety • Shipping Pallets
• Storage • Rack

mmh.com/topic/all
MODERN productivity solution
By Josh Bond,
Senior Editor

Distributor improves fulfillment

speed and flexibility
Bar code labeling software
ensures compliance while
integrating automation
with a legacy WMS.

R anda, one of the world’s largest accesso-

ries companies for men, has a portfolio of
more than 50 brands like Hanes, Levi’s, Guess,
Dockers and Timberland. With more than 100
years of experience in product development,
Randa manufactures and distributes belts, wal-
lets, luggage, jewelry, slippers, hats, gloves and
more. To improve throughput and meet aggres-
sive shipping times, the company deployed
automated packaging systems and new bar code
labeling software in its fulfillment operations.
Previously, the company’s warehouse manage-
ment system (WMS) did not have the flexibility to
quickly edit and update compliance labels. The new
bar code labeling software, (CYBRA, cybra.com)
allows users to create and edit labels without writing
any code. To add that capability, the team needed to
convert more than 100 labels into new formats.
“A label conversion process of this magnitude
would be a challenge,” says Chuck Roskow, vice presi-
dent of operations, “but the label conversion process
was a breeze, taking under 30 seconds per format.”
After the label format conversion, a supply chain
consultant (VSS, thinkvss.com) helped Randa go
live in less than two months. With the new labeling
software integrated, Randa could now begin using
automated packaging (Automated Packaging Sys-
tems, autobag.com). The new solution ensures label
compliance. Once labels are ready, operators can
print the shipping information onto the bag and pack
the bag simultaneously.
“It would have taken a lot longer to get the WMS
lined up with the automated printers and baggers
without the new label software,” says Tim Walters,
CIO Randa. “The suppliers’ teams helped keep the
roll-out a smooth, painless process.”
Randa also uses the new software to design and
print packing slips. What once took a programmer
hours to change files and recompile programs now
takes a few mouse clicks. The integrated solution
also allows the company to effectively use the
appropriate shipping material and reduce cost in
the supply chain.

54 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
Sponsored by Honeywell Intelligrated MAKING THE CASE REPORT

M A K I N G T H E CA S E F O R
M A K I N G T H E CA S E F O R

The Connected Distribution Center

The Connected
Distribution Center
The unrelenting pace and complexity of modern commerce are
pushing distribution operations beyond the limits of their current
The unrelenting pace and complexity of modern commerce are pushing distribution
operations beyond the limits of their current capabilities. Here’s how a connected distribution
center provides a new level of digital transformation that increases reliability, reduces
reliance on labor, improves utilization, and maximizes productivity.
capabilities. Here’s how a connected distribution center provides a
new level of digital transformation that increases reliability, reduces
PEERLESS
C O N T E N T C R E AT I O N

reliance on labor, improves utilization, and maximizes productivity.

C URRENTLY GROWING AT AN
ANNUAL PACE OF 25 PERCENT,
e-commerce and e-retail fulfill-
ment are literally pushing traditional
Put simply, distribution facili-
ties that were built to orchestrate the
movement of palleted goods weren’t
designed to manage single-item orders.
COVERED IN THIS REPORT:
• The support structure for
warehouses and distribution centers Fast-forward to 2019. The amount of fulfillment’s much-needed
(DCs) to their limits. Add industry packaging variability that these opera- digital transformation
growth—which is outpacing labor pool tions are being asked to manage can
availability by a 6:1 ratio—to the mix, range from a single tube of ChapStick®
• What goes into
The Connected DC?
plus the fact that 60 percent of supply to a full pallet-load of generators— and
chain jobs require skills that just 20 everything in between. • How The Connected
percent of the workforce possesses, and “We’re seeing a lot of variability Distribution Center users
in packaging type, materials, sizing, improve performance and
the challenges get even more complex. minimize downtime
The obstacles don’t end there. weights and shapes. They literally
SKU proliferation, flash promotions and change daily,” said Matt Wicks, Hon- • Making the case for The
seasonal offering variability are also eywell Intelligrated’s vice president of Connected Distribution Center
introducing unprecedented complexities product development. “The robotic and
into fulfillment activities. With 50 percent automation systems we’re designing
• How to make your digital
transformation today
of consumers saying that they won’t go today are extremely flexible in nature and with The Connected
back to a business after a negative expe- can adapt to those variations.” Distribution Center
rience, and 73 percent promising repeat Succeeding in today’s complex
business after having a positive delivery fulfillment environment requires a con-
experience, accurately and quickly fulfill- nected, comprehensive approach to the In this Making the Case report,
ing smaller orders across a wider swath management and execution of distri- we explore effective solutions to
of SKUs—all within shorter delivery time bution, fulfillment and manufacturing these and other fulfillment challenges,
frames—is both relevant and necessary. operations. The Connected Distribution show how companies are using The
“Companies are under pressure Center by Honeywell Intelligrated is help- Connected Distribution Center to
from all sides,” said Eric Harty, Honeywell ing retailers of all sizes make the digital optimize their operations, and clearly
Intelligrated’s vice president of market- transformation from manual operations outline the return on investment
ing. “The customers want everything fast to highly automated processes that (ROI) that various operational and
and free. They want the ordered item increase reliability, improve utilization, management roles will see from
to appear on their doorsteps as soon and maximize productivity. such initiatives. •
as they click ‘buy.’ The industry is chal-
lenged with figuring out how to balance
shipping costs, labor costs, a lack of Go to: www.mmh.com/
workers, and DC space that wasn’t built honeywellintelligrated0719
to handle these pressures.” for a full report.
 A SPECIAL SUPPLEMENT TO:

Materials
handling in
automotive
hits an
inflection point
Despite all the technology in our cars,
automakers are only starting to change how
they build them. The next five years should be
interesting, as automakers respond to outside
and inside pressures to up their game.

BY GARY FORGER, CONTRIBUTING EDITOR

J ust coming off the Fourth of July weekend in 2011, Kiplinger.com pub-
lished an article titled “10 features your car will have by 2020.” Well,
we’re almost there, and you might wonder how accurate the article was.
Only one of the 10 features mentioned have eluded auto companies
as of 2019—vehicle-to-vehicle communications. But we all know that
is coming, especially with autonomous vehicles. As to the other projec-
tions, Kiplinger nailed it, identifying major developments from “warnings
galore” to “eyes all around” and “advanced engines.”
Which brings up a parallel question: How is materials handling
likely to change on assembly lines and at Tier 1 suppliers in the
coming years? After speaking with several leading suppliers, changes
in the technology used to build cars is on a slower track than the
changes in technology offered in cars.
“Change is not going to happen overnight,” explains Mike Romano,
president and CEO of Toyota Advanced Logistics North America.
Romano is not alone in that assessment. Several industry experts

56 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
 agreed in their own ways.
“Automotive is a mature supply
chain that needs some overhauls,” says
Scott Krebs, marketing manager at
Orbis Corp.
“There needs to be a mindset change
about materials handling systems feed-
ing the line,” says Bob Hoffman, senior
director of systems design at Swisslog.
Those and other comments don’t
mean change is not coming, just that it
is gently underway and will be gradual
rather than revolutionary.
“Change in materials handling in au-
tomotive is more of a future thing than
something that is already happening,”
explains Greg Pachuta, sales manager
at JBT. As evidence, he points out
that use of automatic guided vehicles
(AGVs) in particular has increased in
the past five to 10 years. However, he
foresees an even greater rate of change
in the next five years.
By the way, Pachuta’s five-year ho-
rizon matches up with those of others
for key aspects of materials handling
change in automotive. Which is curi-
ous given the consumer and manufac-
turing pressures on the industry right
now.
Pressures on automakers
Several keywords are important here.
They include consumer demands, com-
petition, flexibility and connectivity.
“Go back just a few years, and the Ford
F-150 trucks coming down the line
were pretty much identical,” says Krebs.
“Today, almost every F-150 has different
features ranging from sunroofs to sound
systems. That shift alone is forcing
automakers to increase SKUs that are
lineside at any given moment.”
Consumers are forcing automakers
to become more flexible in manufactur-
mmh.com
ing as they demand their own mix of
car features. It’s also happening on the
product front.
We are all aware of the demise of the
sedan and the crowning of the SUV and
trucks as the mainstay of auto com-
panies. This creates its own pressure
cooker for companies to differentiate
themselves, yet be nimble on build
schedules.
There’s also the matter of flexibility
in how the line operates. David Musch,
regional manager at Bastian Solutions,
notes, for instance, a shift from fixed
conveyors to AGVs.
Mobile robots, or cobots, are also
adding new flexibility unmatched by tra-
ditional transfer lifters, explains Satoru
Otani, Daifuku’s senior vice president.
He and his colleague, Randy Lovejoy,
account executive, explain that robots
offer more range of motion that can be
easily reprogrammed for maximum flex-
ibility and ergonomic benefit.
That triumvirate—consumer
demands, competition and flexibility—
have created an unprecedented need for
connectivity throughout supply chains,
explains Irving Suero, account executive
at DMW&H. “Connectivity should tap
M O D E R N M AT E R I A L S H A N D L I N G / J
Automakers are becoming
more comfortable with AGVs,
including very low-profile ones
that tunnel under carts and
move them to their destinations.
into everything from tariffs to the day’s
build schedule. People increasingly have
to be in the loop as it morphs to chang-
ing conditions and demands. Otherwise,
the line is suddenly short parts or build-
ing what won’t sell,” says Suero.
It’s worth noting that due to the
relatively high pay of automotive jobs,
carmakers are not having a difficult
time finding enough workers. Quite
simply, labor is not an issue in this
arena, unlike most every other aspect
of the workforce.
Change is underway
Sometimes change in one aspect of an
operation can’t happen until there’s a
change someplace else. And, that is
certainly the case here.
“In the past two years, I’ve noticed
two important shifts in their approach,”
explains Musch. “Traditionally, we
would talk with an engineer or two
about upcoming changes. Now we talk
to a cross-functional team. It includes
operations and assembly people, main-
tenance, product design and IT. The
team approach clearly signals a shift
but perhaps the biggest one is coming
from the IT people. They have tradition-
U LY 2019 57
MODERN special report
ally known one word and were prone to
repeating it: no, no, no. Now they want
to know how we can make this work.
That’s a huge shift.” He estimates that
more than half of auto plants use the
team approach today.
Another is the time allowed for mod-
el changeovers, says Musch. Tradition-
ally, materials handling suppliers worked
on a six-month timeline. Today, that has
been shortened to two months, he says.
Clearly, auto companies are beginning
to feel a sense of urgency to change how
they manage the line.
What’s up with AGVs?
One of the most important recent
trends has been to broader use of AGVs,
as Pachuta mentioned earlier. “As auto
companies develop their own autono-
mous vehicles for the highway, they are
becoming more comfortable with AGVs
in the plant,” he says.
That bodes well for AGVs of many
types. AGVs using laser guidance and tape
guidance dominate today. Some vehicles
are smaller carts that act as tuggers, bring-
ing product to the line. Others have forks
for handling loads often staged in racks.
Still others are very low-profile vehicles.
Tunneling vehicles are about 6 inches
tall and tunnel under a cart. A pin on the
AGV locks into the underside of the cart
and moves it to its destination. Cobots,
robots on top of AGVs, are still another
variation but are probably the least widely
used of all guided vehicles today.
Pachuta notes that the size of AGV
systems is changing, too. Ten years ago,
the average system was only three to six
vehicles and used in small pockets of
the plant. That has moved onto systems
of 20 to 40 vehicles placed most any-
where in the facility.
Guidance systems are most likely
58 J u ly 2 0 1 9 / MO D E RN MATE R IALS HAND L I NG
A S P E C I A L S UP P L E M E N T TO M ODE RN M ATE RI A L S HA ND L I NG
Reusable packaging reigns, but that requires sophisticated tracking and inspection of
containers to maximize efficiency.
to undergo significant changes going
forward. The general expectation is that
LIDAR (light detection and ranging)
guided vehicles are the future. Rather
than following tape or lasers, LIDAR
AGVs use an on-board computer and
a map of the facility to select, in real
time, a path to a pre-set destination.
The technology is used commercially
elsewhere than automotive right now. In
addition to AGVs, LIDAR guidance can
also be used with automated lift trucks.
But that’s even further in the future.
Automated lift trucks, a close cousin
of AGVs, are not as widely used in au-
tomotive. Raymond’s Chris Merta, man-
ager of automation applications, says his
company has sold many automated tow
tractors, also known as tuggers, to Tier 1
and 2 suppliers of parts and kits.
Additionally, there are, according to
JBT’s Pachuta, some retrofitted forked lift
trucks using his company’s kits in auto
plants. That said, don’t underestimate
the potential for automated lift trucks.
On the line itself, skillets continue to
be popular. These powered carriers that
workers ride on as they work move auto
assemblies along the line as an alterna-
tive to power-and-free and overhead
power-and-free conveyors. Lovejoy and
Otani of Diafuku say skillets are becom-
ing more popular since they reduce
the walking required of workers, lift
assemblies to ergonomic heights and are
extremely quiet, an appreciated feature
in noisy auto plants.
Other developments of note
When it comes to packaging, automo-
tive has standardized on reusables,
says Orbis’ Krebs. That goes for plastic
as well as metal packaging. The parts
transported need to be routed from the
suppliers to the automaker and back.
Doing that efficiently requires good
tracking of reusables, inspection of them
and efficient logistics, explains Krebs.
Both radio frequency identification
(RFID) and Bluetooth technologies
(both part of the trend to connectivity)
are used to track packaging as well as
mmh.com
MODERN special report
the parts inside. On the return side, the
packaging requires inspection for dam-
age before release again. “We treat the
returnable as an asset,” says Krebs.
While tracking and inspection are
important, logistics, the most costly
aspect, are even more important. “We
want to optimize truck routes and other
logistics to ensure maximum cost ef-
ficiency. Just capturing data is not the
solution. Someone needs to analyze the
data and put it to use,” says Krebs.
For instance, a standard 53-foot
truck has positions for 26 standard bulk
containers. Orbis recently released a
new container design that maintains
internal capacity of the containers but
allows 28 positions on a truck. “This
means more parts per truck. Combine
the increased load with more efficient
truck routing, and the logistics of
reusables full of parts and assemblies is
optimized. At least for now,” says Krebs.
Every auto plant is full of parts as
mmh.com
A S P E C I A L S UP P L E M E N T TO M ODE RN M ATE RIA L S HA ND L I NG
they make their way systems, Hoffman says
to the line. Parts flow
Companies they are not yet a trend in
is highly dynamic with
mentioned in automotive.
little sitting anyplace this article Beyond RFID and
for long. And most of Bluetooth used to track
• Bastian
that sits in open racks parts and packaging, con-
• Daifuku
for pickup by lift trucks nectivity is an emerging
or AGVs.
• DMW&H
issue in the auto industry,
But as Swisslog’s • JBT says Suero of DMW&H.
Hoffman points out, • ORBIS “If materials handling
there is call for longer • The Raymond Corp. equipment needs to be
term storage. His • Swisslog flexible, so does informa-
company has recently • Toyota Advanced tion about what’s coming
built two, 100-foot tall Logistics North to the line and the line
automated storage and America itself,” he says.
retrieval systems. Both As expected, Wi-Fi
sit on the outside of the systems figure promi-
plants and generally hold parts coming nently here. But there’s also the mat-
straight from docks. The systems are ter of the Internet of Things (IoT).
teamed with middleware that acts as This will be extremely interesting
a warehouse execution system track- to watch as predictive maintenance
ing parts consumption and calling for advances. Some say the IoT will be
replenishment at pre-set inventory too costly for automotive. But what’s
levels. Despite the success of these the cost of an unexpected line stop-
page due to a maintenance failure?
Probably more than the cost of IoT
infrastructure on materials handling
and other types of equipment.
Looking even further out into the
future, Suero talks about 3D printing.
No, he’s not calling for 3D printing of
entire cars. Instead, he’s looking to 3D
printing as a key developmental
technology to expedite matching
equipment, especially robots with
grippers, to handling specific parts. “3D
allows suppliers to shorten the time
needed to design equipment that most
efficiently handles parts. It will also
improve the actual handling of parts on
the line,” Suero says.
AGV systems delivering parts to the
line continue to increase in size often
including as many as 40 vehicles.
MODERN MAT ERIA L S HA NDL ING / J u ly 2019 59
 MODERN CORPORATE PROFILES
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mmh.com MODERN MAT ERIA L S HA NDL ING / J U LY 2019 67

 MODERN CORPORATE PROFILES
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KEEP PACE WITH

MODERN COMMERCE
CHALLENGES.
FROM A SINGLE ASSET TO THE ENTIRE ENTERPRISE
The Connected Distribution Center blends our portfolios to help
retailers make the digital transformation and enable higher degrees
of connectivity within the DC and across the enterprise.
• Accessible, end-to-end capability
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• Insights and predictive analytics, from sensors to the cloud

INCREASE ASSET RELIABILITY

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Take a predictive approach to asset monitoring

How? that’s based on actual asset health — not a
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IMPROVE UTILIZATION

$1M revenue gain from a 10-carton

per hour output increase

Incremental output improvements quickly

How?
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MAXIMIZE PRODUCTIVITY

Reduce employee turnover to

minimize disruptions

Labor management system data can

accurately predict employee walk-offs
How?
and allow managers time to intervene or
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See how at www.intelligrated.com/connected

© 2019 Honeywell Intelligrated. All rights reserved.

68 11513-Profile-MMH
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 MODERN CORPORATE PROFILES
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Lenze
Lenze Americas, based in Uxbridge, MA, is a
subsidiary of Lenze SE in Germany, a global leader
in industrial automation systems. As a manufac-
turer of electrical and mechanical drives, motion
control and automation technology, Lenze offers
products, drive solutions, complete automation
systems and engineering services and tools from
one single source. Lenze’s solutions are found in
many material handling applications: roller and belt
conveyors, rotary and scissor lift tables, lifting sta-
tions, palletizing systems, storage and retrieval units, monorail overhead conveyors and AGV systems.
Our drive and automation solutions guarantee a smooth connection to any upstream or downstream
system - steady or dynamic, lifting or lowering, moving or positioning - increasing the productivity of
your logistic systems.

Lenze’s Recent Innovations:

i500 Inverter Series – high-quality inverters in the 0.33 to 177 Hp (0.25 to 132 kW)
power range. This drive features a streamlined design, scalable functionality, and
exceptional user-friendliness. The space-saving design, innovative interface
options, and modularity make it a reliable option for a wide range of machine
applications.

Lenze Smart Motor – fully programmable from a smart phone, it blends the
simplicity of a conventional AC motor with electronic drive control technology -
freely adjustable speeds, programmable I/O and integrated functions for conveying needs.

g500 Gearboxes – designed for mechatronic integration with the Lenze Smart Motor and developed to
transform motor speed into torque as intelligently and accurately as possible.

The Smart Motor, in tandem with the g500 gearboxes, offers a single, efficient motor with numerous
integrated functions for material handling applications, including higher starting torque and adjustable
preset speeds between 500 and 2,600 rpm, which reduces the required numbers of geared motor
combinations by up to 70 percent. The compact
Smart Motor meets the highest requirements in energy
efficiency and can be conveniently operated using an
NFC-capable smart phone.

Lenze Americas, 630 Douglas St., Uxbridge, MA 01569 USA

Toll Free Number: 800-217-9100, Tel: 508-278-9100
E-mail: info.us@lenze.com, Website: www.lenze.com

mmh.com
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mmh.com M O D E R N M AT E R I A L S H A N D L I N G / J U LY 2019 71
 MODERN CORPORATE PROFILES
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Connecting Your Loading

Docks to the Future

iDock™ Controls
These new technologically advanced controllers are used to operate Poweramp loading dock
equipment, as well as other optional dock accessories and door operators. iDock Controls are
equipped with an interactive message display for fault notifications and operational instructions, as well
as a menu with dock equipment information and usage. iDock Controls are also built with dome button
technology for reliable ease of use, and a 3-in-1 LED light assembly for a clear indication of the dock
conditions.

iDock™ Connect
Once iDock Controls and Poweramp equipment are installed, companies can
setup an online account with iDock Connect, a web-based software for loading
dock analytics. From iDock Connect, users can view visual reports of the
current status and activity at each of their docks. They can also analyze their
dock activity during a select time period and compare it to a previous period.
iDock Connect will even send text and email notifications of events that occur
at the docks.

Loading Dock Levelers

Starting with hydraulic levelers, Poweramp has always been a leading manufacturer of
loading dock levelers in the USA. With the use of structural steel C channels and I beams,
Poweramp’s levelers maintain strength and reliability for any loading dock application.

Poweramp has also led the way in innovation with its CentraAir® (CA) Dock Leveler. The
CentraAir has the advantage of offering an automatic push-button operation without the
need for an electrical infrastructure in the dock pit, as the CA can operate completely off of
compressed air.

Vehicle Restraints
Poweramp offers an array of reliable restraints, one of which is the TPR UniLock® Vehicle
Restraint. The UniLock is the only trailer-positioned restraint on the market that can automatically
release “RIG Wedge” pressure without the truck having to reverse in order to disengage.

In addition to the UniLock, other Poweramp vehicle restraints include the PowerHook®, which is
mounted within the dock pit and actively seeks the trailer’s RIG and maintains a positive hold.
The PowerStop® is an economic option that is mounted to the dock face and can be operated
either automatically or manually.

Visit www.poweramp.com or call 800-643-5424 to locate a dealer near you.

72 JU LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
 MODERN CORPORATE PROFILES
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OUR NAME SUGGESTS WE COULD BE
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WITRON Intergrated Logistics

Warehouse automation for …

W I T RON designs, realizes, and op erat e s t ailor-made intra-

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mmh.com M O D E R N M AT E R I A L S H A N D L I N G / J U LY 2019 75
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M a k i n g y o u r B a l i n g P r o c e s s M o r e P r o f i ta B l e

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Balemaster designs, engineers, and manufactures balers that simply go about doing their job so
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Plus all of our wide-mouth auto-ty balers offer feature-rich touch screen diagnostics and controls,
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u AN ISO 9001 CERTIFIED COMPANY
Pyramid Inc. is an ISO 9001
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At that time, polyurethane was
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 MODERN CORPORATE PROFILES
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Ryson specializes in
Vertical Conveying Solutions.

Our business philosophy is simple: Focus on quality and service. Take good care of
our customers and employees. Our value proposition is to provide products that have
a low total cost of ownership.
Ryson Spiral Conveyors need less floor space than conventional incline
conveyors and are faster and more reliable than any elevator or lift. They are
especially well suited for Consumer Packaged Goods companies and any Warehousing
operations. All Spirals are available in powder coated carbon steel, hybrid, stainless
steel, wash down, and freezer versions.
Ryson products are crafted with great care in our modern manufacturing plant in
Yorktown,Virginia. Our full inventory of spare parts enables us to provide the high level
of service our customers have come to expect from Ryson. We are committed to a
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RYSON INTERNATIONAL, INC.

300 Newsome Drive • Yorktown,VA 23692
Phone: (757) 898 -1530 • Fax: (757) 898 -1580
VERTICAL CONVEYING SOLUTIONS

half-page-profile.indd 1 6/10/19 11:31 AM

Thinking Ahead to the Holiday Peak? 1,729,031: 2016

s

1,943,317: 2017
VARGO ® Drives E-Commerce Results 2,759,356: 2018
Total number of units one retailer
As a systems integrator, VARGO® combines the best material handling solutions with the processed in one six-day holiday peak.
intelligent design of its Continuous Order Fulfillment Engine (COFE®) — the first intelligent
Warehouse Execution System (WES) — to develop game-changing fulfillment solutions for
its customers. COFE® processes orders without waves inside distribution centers, where
it synchronizes and sequences activities across all work resources — machines, people
and processes. Average order cycle time of 2.25 MILLION: 2016
2.5 MILLION: 2017

20 3.8 MILLION:
s

COFE® WES enables a fulfillment center to process orders for both efficiency and expediency
to meet one or more shipping windows. COFE® seamlessly and effortlessly moves between 2018 Cumulative
number of
periods of efficiency and expediency. While supervisors focus on labor, the WES manages flow orders
in a waveless environment — eliminating buffers and allowing new orders to be released and minutes our top seven
on a COFE® fulfillment
processed in real time. peak day. centers packed
in one
VARGO® retail customers reported these numbers during the 2018 peak week of online holiday shopping. peak week

VARGO® is the only company with COFE®, the warehouse execution system software that does for
fulfillment what Lean did for manufacturing. Learn more at 877.876.6384 or vargosolutions.com.

Warehouse Execution Systems • Integration & Design • Material Handling Equipment

FOCUS ON Conveyor & Sortation

Modular conveyor built from flexible components

A line of conveyors for handling containers, cartons, trays and individual products weigh-
ing up to 110 pounds is built from modular components for flexible installation and easy
maintenance. The conveyors can be configured for transport, sortation, mergers, diverts,
storage and buffering. Features include low noise operation, integrated cable ducts,
ergonomic beveling, simple fault rectification, and UL-certified electrical and mechanical
components. They can be integrated into freezers with temperatures as low as -16.6°F.
Schaefer Systems International, ssi-schaefer.com.

Robotic sorter induction system Create space

A new robotic sorter induction system uses a robotic arm to handle a variety of package sizes between packages
and types, including boxes, polybags and jiffy bags. This streamlines labor operations and prior to sortation
improves productivity while allowing distribution centers to reallocate staff. Constructed to
with gapping
be modular and scalable, the system easily retrofits into existing induction stations. Built on
conveyors
the supplier’s Universal Robotic Controller, the robot is also programmed with intelligent algo-
Two new conveyor mod-
rithms, machine learning and artificial intelligence. This enables it to improve its own perfor-
els, the Gapper D and
mance over time while also providing label detection and automatic reorientation. Honeywell
Gapper O, have joined
Intelligrated, intelligrated.com.
the supplier’s line of gap-
ping solutions that create
space between packages
Order consolidation sorter to improve throughput and
for e-fulfillment accuracy during sortation.
Capable of storing, transporting, sorting, sequencing Engineered for feeding
and consolidating eaches handled in e-commerce order sawtooth merges, combin-
fulfillment, a new Pouch System streamlines piece pick- ers, sorters or any other
ing. Items are batch picked and then inducted into the application requiring a gap
pouch system, one item per pouch. Each pouch travels between packages, the
on the overhead rail system to a buffer and is released/ spacing also makes it easier
sorted to a packing workstation. At the workstation, all to print and apply labels,
the items for a customer order are consolidated for packing. The supplier’s warehouse execu- read bar codes, weigh pack-
tion system controls the precise arrival time of each pouch at a packing workstation. The ages and sort packages. The
system can also be used to induct returned items after they have been inspected and deemed Gapper D uses a direct gap
resalable. Once the item is in the pouch system, it is held in a dynamic buffer until a new order ratio for blow through gap-
is received for that item. The WES releases that pouch to a packing workstation where it is ping for systems with prod-
prepared for shipment. Dematic, dematic.com. ucts that are similar in size;
the Gapper O uses optimi-
zation to create gaps for
Singulate bulk flow of parcels, flats, products with various sizes.
totes and polybagged shipments Sensors placed along the
Engineered for induction to loop sortation systems, conveyor recognize pack-
the Automatic Parcel Singulator transforms a bulk ages and ensure that gap
flow of parcels into a uniformly separated, spaced distances are consistent,
and aligned flow prior to the in-feed to the auto- while the conveyor either
mated induction of a high-speed loop sorter. Fully speeds up or slows down to
automated, it handles a variety of items and provides re-distribute the gaps. Both
a single system for handling parcels, flats, totes and conveyors feature auto belt
sealed polybags from collection and distribution sorting areas, while minimizing the need tracking, a spring tension
for manual handling and supervision. Each system is built for efficient use of floor space. take-up indicator, precision
Controlled by programmable logic controllers and frequency inverters capable of reusing bearings and one-piece
kinetic energy, the system ensures maximum capacity and throughput with minimum energy design. Hytrol, hytrol.com.
consumption. Beumer Group, beumergroup.com.

78 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
FOCUS ON Conveyor & Sortation

Tapered rollers allow

INDUSTRIAL CEILING FANS
conveyor system to
create curves
A new line of tapered rollers
enable curves within RollerDrive series conveyor. Built with
fixed, tapered elements pressed into a cylindrical steel pipe,
the rollers enable the optimal curvature to convey materials
while overcoming challenges associated with centrifugal and
frictional forces. This accommodates variable roller speeds
and eliminates static charges from friction. The rollers can be
used in applications with temperatures as low as -18.4°F, are
based on 1.97-inch diameters and come in gray or black (anti-
static) finishes. Interroll, interroll.com.

Flexible conveyor w 42000 CFM & Covers 8000 ft2

accommodates limited
floor space, facility w Runs on 110 Voltage
obstructions w Only $1,995
With construction based on spiral w Improve Wellness and Productivity
conveyor technology, the modu-
lar AmbaVeyor system flexes
sideways and travels through upward and downward bends. This
superdutyfans.com
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into a single drive conveyor system up to 164 feet long. Ideal
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for a reduction in cost, wiring and electronic components. TheSUPER-DUTY-ABS_Rev.indd 1 4/29/19 11:33 AM

system runs at speeds up to 197 feet per minute with a load

capacity of up to 100 pounds, depending on the type of product TRACK.
conveyed. To ensure stable product support over the entire belt
width, the belt moves on slide profiles around the center and the
outer ends of each slat. Ambaflex, ambaflex.com.
CAPTURE.
Sort and
DELIVER.
sequence
with overhead OEM Data Delivery’s Bluetooth Trackers and
pocket Tags deliver location and utilization data
sortation for non-motorized and motorized assets.
system
The pocket sorter
system is an over- EASY INSTALL.
head sorting and
sequencing system that can be equipped with adapters for sort- WORKS WITH YOUR IT.
er pockets and/or with adapters for hangers. Both hanging and
flat-packed goods are conveyed, sorted and sequenced in one LOW COST.
system as single items tracked by RFID technology. The system View our full line-up of Bluetooth
Data Devices at oemdd.com/mmh Rugged, Bluetooth Data Devices.
uses a matrix sortation algorithm to put parts that were batch-
picked in various warehouse zones into a precise sequence, as
well as to bring hanging and flat-packed goods together at a
single pack station. Ideal for fashion, retail, e-commerce and Phone: 203.929.8431
Email: info@oemdd.com
omni-channel applications, it can also support goods-to-person
picking. KNAPP, knapp.com. https://oemdd.biz/blog/

mmh.com M O D E R N M AT E R I A L S H A N D L I N G / J U LY 2019 79
FOCUS ON Conveyor & Sortation

Telescopic conveyor for loading, unloading unit cargo

The Express Snoot telescopic conveyor uses the belt-2-box concept to save time in load-
ing and unloading floor-stacked parcels and loose cargo. The conveyor moves alongside
the items, reducing walking time. Capable of moving 25 degrees
in all directions, the conveyor moves up, down, right and left as
appropriate to support the operator as they move into differ-
ent loading and unloading positions. Equipped with a high-grip
belt, parcels are pulled onto the conveyor, minimizing the energy
expended by the worker. Safety highlights include full under-
guarding and pinch guards, as well as a highly sensitive early
Sort the
warning system that immediately stops all movement when an object is detected. This pro-
unconveyable
tects people working in the area, as well as prevents the conveyor from impacting container
with high-speed
walls or floors. Caljan Rite-Hite, caljan.com.
unit sorter
The Cross Tray high-
speed unit sorter is engi-
neered for handling of
Move pallets precisely, with or without non-conveyable, fragile
universal robotic integration and lightweight items
The 2200 Precision Move Pallet conveyor provides at throughputs of up to
accurate positioning and routing of parts for assembly, 9,600 items/hour. Using a
robotic and inspection applications. New enhancements mechanical positive divert,
include heavy load corners, tight turn corners, low-profile the unit can sort in left and
lift and locates, and elevators. It can be integrated with right directions. To avoid
a universal robot to move and orientate products using an elevator, to pass over a lift and the need for motors in the
locate station and to navigate through a 180-degree heavy-load corner. Easy programming, carriers, the sorter has a
fast set-up and flexible deployment make the unit ideal for systems that require an infeed simple and reliable divert
and discharge to a Universal Robot. Dorner, dornerconveyors.com. mechanism. Other features
include four-sided enclo-
Closed deck sliding shoe sorter sures on each tray to keep
keeps items from getting stuck items in place during their
The HC sliding shoe sorter uses a combination of high- journey, cleats on both
speed and narrow slats to ensure gentle handling at sides of the tray for forced
high throughput speeds. Fully closed, the sorter deck discharge, low energy con-
prevents products from being damaged or getting sumption using a friction
stuck, while reducing the amount of dust and pollution drive system, and light-
that can enter the machine. This results in higher per- weight construction that
formance and less maintenance. The sorter handles products ranging in weight from 0.55 to enables the system to be
110 pounds and cases as small as 0.2 x 3.9 x 1.7 inches up to 3.3 x 6.6 x 3.3 feet. Its maximum installed on standard mez-
operating speed is 9.8 feet per second. Other highlights include modular construction, a zanine floors. Eurosort,
15-inch touchscreen panel, wireless connectivity, and noise absorbing materials for quiet eurosort.com.
operation. VanRiet, an MHS company, vanrietgroup.com.

Flexible, scalable pocket sorter system

The OmniPick zero-touch pocket sorter system is flexible and scalable. In operation, individual items are placed in the hang-
ing pockets. Items are unloaded from shipping cartons, either manually or automatically by an intelligent gantry robot, then
placed on a short belt conveyor to induct the product into its unique pocket. Pockets holding inventory are transported by
conveyor from each induction station to a dynamic buffering system. All inventory is sequenced for store-friendly or individ-
ual customer packing with one or more matrix sorters. Picks are automatically consolidated and emptied from the pockets
into shipping containers or directly to automated bagging systems. Additionally, the system handles garments on hangers
along with flat garments stored in the hanging pockets. Returns can also be buffered and used for order processing without
additional handling. TGW Systems, tgw-group.com.

80 J U LY 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
 FOCUS ON Conveyor & Sortation

A-Frame dispenses
onto integrated
gathering belt
conveyor
Achieving rates of up to
1,200 totes or cartons per
hour, the Dispen-SI-Matic
A-Frame pick-to-belt sys-
tem ejects products onto a
gathering belt conveyor that
runs through the center. A
discrete section, or order
space, of the gathering belt is assigned to each order being
picked. As this section of the belt passes a channel from
which products are needed to fill the associated order, the
unit’s controls start the electric motor on the dispenser, caus-
ing the product to quickly eject onto the belt. The system
handles product sizes ranging from 2 x 0.6 x 0.6 inches to
12.4 x 10.5 x 3.8 inches with a stack weight up to 35 pounds.
SI Systems, sihs.com.
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9 more information, contact:

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mmh.com M O D E R N M AT E R I A L S H A N D L I N G / J U LY 2019 81
MODERN 60 Seconds with...
Michael Wohlwend
Alpine Supply
Chain Solutions
TITLE: Managing principal
LOCATION: St. Charles, Ill.
EXPERIENCE: 30 years in supply
chain management, including top
leadership positions with several
global software companies and pri-
vate equity firms. He is a past presi-
dent and executive board mem-
ber of WERC and serves on the
executive board of Gigi’s Playhouse
Downs Syndrome Achievement
Centers. His passion is to help Gigi’s
young adults get jobs.
Modern: What are the trends
you’re watching in the supply
chain management software space,
especially execution systems?
Wohlwend: One of the most inter-
esting developments I’m watching is
the move to the Cloud. It has been
there for transportation manage-
ment systems (TMS) for some time,
but there hasn’t been a market for
warehouse management systems
(WMS) since that’s a real-time execu-
tion system. If it goes down, you
can’t ship and people lose their jobs.
That’s now changing. Solution pro-
viders are making significant invest-
ments in Cloud technology and
security, and that means more orga-
nizations are comfortable migrating
their on-premise solutions to the
Cloud. That’s going to allow young-
er solution providers, who have built
their technologies on the Cloud, to
catch or surpass some well-known
players. Those older solution pro-
viders are going to have to build a
Cloud solution.
82 J u ly 2 0 1 9 / M O D E R N M AT E R I A L S H A N D L I N G
Modern: What about TMS?
Wohlwend: TMS in the Cloud is a
proven solution, and it’s not mission
critical. If it goes down, you can still
ship. So, we’re seeing Cloud TMS
providers growing fast and gaining
market share.
Modern: What are you seeing in the
warehouse execution space?
Wohlwend: What used to be called a
warehouse control system that deter-
mined where a tote should go is now
running voice and pick modules. So,
there’s a blurred line between what’s
now called a warehouse execution sys-
tem and a WMS. Now, you still need
the brain, so companies that have a
big investment in an older WMS aren’t
going to rip it out. They’re investing in
WES to get those order fulfillment capa-
bilities. It comes down to where you’re
at in your technology investment and
whether it’s fatigued. Now, one of the
things we’re seeing with the new Web-
enabled technologies is that a company
can get an upgrade every year of their
WMS. But, they’d have had to install the
system in the last three or four years to
get that capability.
Modern: What about WMS add-ons?
Wohlwend: Companies are invest-
ing in two areas: Slotting and labor
management. Both are driven by the
Amazon effect. For instance, there’s a
DC here in Chicago now paying $15
an hour. That means every other DC in
that industrial park had to raise their
rate to $15 an hour or they’re going to
lose their employees. With that added
expense, you have to optimize your
labor, and you have to do everything
you can to make the job more attrac-
tive. That’s leading to slotting and
labor management, as well as more
automation like conveyor and robotics
to make the job easier.
Modern: How acute is the labor
shortage?
Wohlwend: It’s the No. 1 issue for
all of the companies Alpine is work-
ing with right now. It’s not that there
isn’t labor; it’s the quality of the labor
and then retention. If your systems
and processes aren’t easy to use, the
labor is going to leave.
Modern: We hear so much today
about artificial intelligence (AI) and
machine learning. What role are
they playing in the execution space?
Wohlwend: That’s interesting. In my
previous roles, I saw where using AI
and Big Data helped with functions
like human resources or customer
relations management. I haven’t
seen it yet for real-time distribution.
If you’re talking about inventory or
distribution network planning, those
are great tools to help you optimize.
I think it’s going to be interesting to
see how and where those technolo-
gies get applied in the supply chain
execution space.
mmh.com
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 SOME PEOPLE
THINK WE’RE IN
THE LOGISTICS
BUSINESS.

WE ARE.
Is UniCarriers a logistics company? In a way. We’re an American forklift
manufacturer, and logistics companies across the nation count on our
equipment to help them deliver their goods by delivering greater efficiency,
economy, and uptime. All backed by the industry’s best standard warranty.

That’s Reliability. Redefined.

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ILLIN IS Contact UniCarriers Americas for specific warranty details, limitations and exclusions.