The devices, which are suitable for use in distribution centre environments, come in two sizes, seven or ten inches.

The Toughpads carry the MIL-STD-810G durability certification—a US Department of Defence standard that incorporates tests for drops, waterproofness, temperature and other adverse operating conditions.

The Toughpad FZ-G1 is a ten-inch model that runs on Windows 8 Pro (and is downgradable to Windows 7 Pro). It weighs 1.1kg (2.43lbs), runs on an Intel i5-3437U vPro with 1.9GHz (which can be increased to 2.9GHz using Intel Turbo Boost). The FZ-G1 offers the choice of a 128GB or a 256GB solid state drive (SSD) and either 4GB or 8GB of RAM. A micro SDXC is optional. It includes two cameras: a front-facing 720P webcam and microphone and a 3MP rear autofocus camera with LED light. Battery life is eight hours.

The ten-inch FZ-A1 runs on Android 4.0 and uses a Marvel 1.2GZ dual-core processor. It weighs one kilogram (2.1lbs), has 16GB ROM, 1GB RAM and a micro SDHC. The front camera is a 2MP webcam with a microphone and the rear camera is a 5MP autofocus with an LED light. Battery life for the FZ-A1 is 10 hours.

The smaller Android table, the JT-B1 is a seven-inch model also runs on the 4.0 version of the OS. It has a TI OMAP4460 1.5GHz dual core processor, 16GB ROM, 1GB RAM and a micro SDHC. It comes with a 1.3MP front camera (with microphone) and a 13MP rear camera with autofocus and an LED light. The JT-B1 weighs 544g (1.2lbs) and its battery lasts for eight hours.

Integrated 4G LTE mobile broadband and barcode reading technologies can be added as options to all models. The Windows 8-based FZ-G1 also includes the option to add an additional USB port, a 10/100/1000 Ethernet port, a smart card reader, a serial port (key for field service applications), or a larger solid-state drive. Hardware encryption, root protection and FIPS compliance are available in various configurations of the Toughpads for enterprise level security.

The system was competitively tendered in 2011, with the contract originally awarded to Tecsys Inc for $1.55 million.

“Tecsys ended up being the winner, both in overall capacity and in price,” LCBO’s Hugh Kelly, senior vice president of information technology, said in July 2011 after six firms bid on the contract.

“A million bucks is a lot of money if it’s yours and mine, but when you’re looking at acquiring software and implementation services, it’s really not a whole lot,” he told ComputerWorld Canada at the time.

Almost two years later the system is still not in place, and the IT department had to go back to the LCBO’s board of directors in January to ask for another $425,000 in unexpected costs.

Members of the board raised “the question of how to avoid a similar situation happening in the future,” documents obtained under Ontario’s freedom-of-information law show.

Eventually, the board approved the increase after being assured the matter “would withstand a review by the ministry (of finance).”

“The product was not suitable ‘out of the box’ and, as a result, required customization,” LCBO spokeswoman Heather MacGregor said in an emailed response to questions.

She cited a series of problems, including changes to the original specifications to meet new financial reporting standards, and further changes to nine of the 17 customizations the product needed.

“The system is testing very well and is anticipated to be in place in September 2013, roughly a year later than originally planned,” she said.

The chair of the LCBO board, Phillip Olsson, did not vote on the increased amount for the Tecsys Inc contract when the matter came up in a January teleconference, declaring a conflict of interest. The minutes of that meeting say he also refrained from participating in the discussion.

Olsson is a member of a Toronto firm, KJ Harrison and Partners Inc, which manages the investments of high-net-worth individuals.

MacGregor said Olsson recused himself from discussion and voting on the increase in the Tecsys Inc contract because “there was a possibility that one of the funds his firm manages for clients contained a holding in Tecsys Inc.”

“That fund was managed by another portfolio manager in his firm who specialized in technology investments, and who had independently identified Tecsys Inc as a possible investment,” she said.

MacGregor added that Olsson has no personal financial interest in Tecsys, and has never contacted the company.

Olsson did not declare a conflict in 2011, when the contract was first awarded, because there was no conflict at the time, she said.

A spokesman for Tecsys, Robert Nehme, declined to comment on the contract cost overrun, referring questions to the LCBO.

The Tecsys system replaces a warehousing system, created in the late 1990s, that allows customers to place special orders for products not otherwise available at LCBO locations.

Last year, the LCBO had net sales of $4.71 billion, and gave a record $1.63 billion to the Ontario government.

The trouble is keeping that many units in stock took up a lot of room: over 92sqm (1,000sqf)—room which they company just didn’t have—so it looked for an automated storage solution and found an answer with Kardex Remstar’s Vertical Lift Modules (VLMs).

For the full story, look for the May-June issue of MM&D.

To see more MM&D original videos click here for the full list.

Flint Packaging had a challenge. As far as problems go, it was the good kind, but it was still a situation that was less than optimal.

Based in Vaughan, Ontario, Flint Packaging takes corrugated cardboard and turns those sheets into custom-made boxes for clients in a wide variety of industries. And while it may not seem that boxes are items that would need to be available in rush or on-demand order situations, they are.

“We would be looking at approximately 20 clients who carry a large amount of inventory on our floor at any given time. It generally turns within 30 days. It’s available for the customer 24 hours a day seven days a week,” says Flint sales manager Don Archibald.

“I do have some customers for which I must keep something on the floor otherwise they could be in a spot where their lines might go down. And we’re willing to do that. I just needed to be able to do it under one roof,” adds Flint vice-president Karina (Kari) Mattila.

The “under one roof” requirement presented difficulties. The company, which has sales of $10 million annually and a workforce of 43 employees, found itself out of warehouse room in its own building, so it was forced to rent space in nearby facilities.

Aside from the hassles involved in handling and managing materials stored in multiple locations, off-site storage meant increased costs, a situation that made no financial sense and required a solution.

“We were leasing warehouse space. At one point it was 20,000sqf. Then we had it down to 10,000sqf. The idea was to remove it all together,” says Mattila. “I was tasked with the requirement of no more leased space. If we wanted to warehouse our inventory items, it would need to be done here and I needed a solution for it.”

Mattila decided the only solution was to make more efficient use of Flint’s existing space, so she began looking for storage solutions that would turn dead, unused space into storage areas. While much facility’s floor space is taken up with manufacturing equipment—machinery that cuts, shapes, glues and bundles the boxes—the space above the equipment was empty.

To see MM&D video of Flint’s mobile pallet racks click here.

“If you stand back and look at the plant you see dead space above everything. We’ve seen enough Ikea commercials to know that empty space isn’t good,” says Mattila.

“You can always utilize ‘up’ in the plant. Just because you only have 65,000sqf of floor space, if you can utilize what is up above, you can basically double your plant floor space under the right conditions,” says Archibald.

Originally Mattila thought installing a narrow-aisle mezzanine or storage platform would be the answer to Flint’s warehousing problem, so she began searching online for vendors that could give Flint a usable second floor. As part of that process, she came across the website for SSI-Schaefer where she saw mention of the company’s mobile pallet racking.

“One of the case studies had a tractor trailer bed with huge roles of paper, similar to what our corrugated sheet suppliers may use. So if they were capable of building racking or storage solutions for big rolls of paper like that I thought certainly they know what they are doing and they’d be able to help me find a way to store some skids of corrugated.”

What Mattila didn’t know at the time, however, was that while mobile pallet racks were popular in Europe, SSI-Schaefer had never built and installed one in an already existing facility in Canada.

At the initial meeting between the Flint team and Bob Trojnar, sales manager for the materials handling division of the Brampton, Ontario-based Canadian division of SSI-Schaefer, a number of solutions were discussed, including storage platforms. However, it wasn’t until Mattila brought up the possibility of mobile pallet racking that Flint’s storage solution began to take shape. Even then, it wasn’t as simple as placing an order for some stock racking. Because every mobile pallet racking system is custom-designed,  Trojnar first had to understand just what Flint needed and how the system would be used.

“I had to learn about the capacities and the weight of cardboard,” says Trojnar. “I spent a fair amount of time in their manufacturing facility, learning their production—their runs, how big they are. I really learned a lot about the corrugated cardboard manufacturing process because I had to. I had to understand if this was going to work because to propose a system and make sure it is going to work you need to do your due diligence and learn about what they do. That was a challenge too. It was something totally new. I would expect to go to a distribution centre with that kind of system, not to a cardboard manufacturing facility. To us it was all new.”

For example, Trojnar originally proposed a system that was three bays high, but after some research and consultation with Flint, it was determined the cardboard was light enough—a 102cm (40in) by 122cm (48in) skid weighs approximately 272kg (600lb) unless it is tightly fluted and therefore much heavier—that the system could support a four-bay high configuration.

Not only did Trojnar and SSI-Schaefer need to figure out a system that would work for Flint, they also had to find a partner to help provide components for the system. In the end it incorporated carriages from Spacesaver Solutions Inc into the racking.

Before the shelving could be put up, the plant floor had to be prepared. The surface was ground down and epoxied (to ensure it was level) and guidance tracks were cut into the floor. That took three days. Then Trojnar’s team spent four days installing the racking. The power tools used by the installers required Flint to temporarily install heavy duty power feeds, but the racking itself has a much lighter energy demand.

“The system is driven by the motors. These are very, very low voltage 88-volt motors. Each bay has its own motor. And it’s driven by the chain drive. It’s unique, but it’s a pretty simple drive system. The whole system operates on 110-volts. It doesn’t use much power. Because you have those 88-volt motors, they have very low power consumption. Your stove in the house consumes more than that whole system,” says Trojnar.

The system has two stationary racks at each end and three movable units of bays. The bays on both the fixed and the mobile racks run three long and four high. The racks are designed so more products can be stored in a smaller space than traditional stationary racks would use.

In their tightest configuration, the three mobile racks move toward one of the stationary racks. They come to a rest tightly spaced together—much like the closed accordion bellows—allowing no access to most of the products they store.

The only way to reach the pallets on the shelves is via the space between the last of the mobile racks and the stationary rack on the far end. That distance is a standard aisle. When access to the inner bays is needed, the mobile racks separate and slide into a position that creates an empty aisle in front of the required bay.

SSI-Schaefer’s mobile pallet racks come with a number of safety features to ensure foreign objects cannot be crushed or trapped between the racks as they move together. In addition to the AC power, they can, in emergency or power outage situations, be  run off a portable battery.

“The backup battery is in a little briefcase. In case we get a significant power outage then we have to insert a key—it looks like an electronic meat thermometer—and press the button. You have to do it manually because there are no advanced safety features when it’s running from backup battery power. In lieu of the advanced safety features, they insert the human element, which is you have to be standing there physically holding it order to make it go,” says Mattila.

While operating under normal conditions, the rack movement can be activated in one of two ways. The operator can push a button on the rack control panel, or drivers operating one of Flint’s five tow motors or the lone reach truck, can push a button on their vehicles and trigger the movement remotely. The racks move at a speed of one metre per minute.

When the plant is closed, the racks move into a night-park position, says Archibald. “All of the racks will separate to a certain extent. They will spread across the whole area. That’s in case of a fire, to allow the sprinklers to do their work better.”

The area covered by the racks formerly held stacked corrugated sheets and boxes. While there is still a small area where the cardboard is sitting on the floor and not on shelves, the mobile pallet racking takes up most of the available storage space.

“The racks are roughly 31ft by 54ft. They hold 240 to 360 skids, depending on whether we get two or three to a bunk. The comparable space need for non-mobile racking would be 31ft x 106ft (including room for aisles) and we would only get 180 maximum because we would only be able to go three high” says Archibald.

So far Flint Packaging is very pleased with how the racks are working. The company gave up its extra leased warehouse space in August 2012—as soon as the racks were installed—which means the racks, which cost Flint in the low six figures, are well on their way to paying for themselves. According to Mattila’s calculations based on the cost of rental space the racks will take her either eight months to pay off (assuming they are taking the place of a 20,000sqf lease) or just over 14 months (assuming a 10,000sqf lease).

Not only are the racks a financial success, they are also helping to make Flint’s operations more organized, says Archibald.

“It has given us a visual flag to improve our efficiencies. We have a unique date-coding system. If everything was stacked up on the floor, we wouldn’t be able to see the little tags and see when things were manufactured, especially if we had a quality issue with the customer. So the visibility of it is really good. It has just worked.”

Even though they’ve only been in place for a few months, the mobile pallet racks have already caused the Flint team to start speculating about future applications.

“I want another set of racks out there, another row of them. Honestly I can see us having three more areas of mobile pallet racking,” says Archibald. “I think mobile pallet racking on its own can expand our floor space utilization by 60 percent. I don’t think that’s out of the question. You’re adding an extra layer. You’re getting rid of all the aisles. If you stick in more mobile pallet racking, it almost compounds the usage area.

Mattila agrees with the desire to buy more equipment. “I know I want at least one more for sure.”

As much as they’re enamoured of the racks, Archibald says he can see the next set being slightly different from the original installation.

“We’ve learned a few things we’ll probably change a little bit for the next one. We’d change the rack length. There is a lot of wasted space in there right now. Instead of 120in long, maybe we cut down to 105in or 106in, but we’d have to talk about that.”

As to when the company will be ready to install another system, that’s still up in the air.

“I don’t have any projected dates for that,” says Mattila. “Now that I know it exists, as soon as I’m in a spot when I have enough going through my plant to require the rental of storage trailers—or the space on my floor is taken up and my volume goes so high I don’t have room to move due to incoming and outgoing material—I’ll do it then. Just as soon as it hits that point, because I will not go and lease space. No. There’s no need. I know this is in our toolkit, in our arsenal now. I won’t get caught back up in that again.”

Not that Flint has any plans to relocate in the future, but the fact the racks are portable is just one more reason they appeal to Archibald.

“One of the beauties of it is if we ever decide to move, you can pick it up and take it with you, whereas a mezzanine is a sunk cost that stays with the building.”

Archibald also noted that because the racks were just pieces of equipment, and not considered to be structural changes to the building as a mezzanine would be, there were no building permits required.

The mobile pallet racks do represent a significant investment for Flint, so Mattila is determined they will be well cared for. The tracks are swept out or vacuumed on a regular basis to remove any stray bits of wooden pallets or cardboard fibres. She says the company even purchased equipment specifically to use in conjunction with the racking.

“The forks on our other trucks were too long and we didn’t want to have to retrofit something. I wanted to be able to go with something as small in the aisle as possible, and we had somebody here who had the skill set and was quite good at using reach, so we bought a reach truck. Is it possible to get the tow motor in? Yes, it’s a little bit of a dance if you put the shorter forks on it, but again, it’s an investment. I don’t want to ding the racks. I would rather use the reach. It’s easier to turn.”

So far, maintenance on the racks has been easy. Because they are so new, they haven’t required any attention. Eventually Trojnar expects to see Flint’s racks on a six month inspection schedule. At that time the chains will likely be greased, just to prevent wear and tear, but he says that will probably be the extent of any servicing.

While Flint’s racks maybe the first of their kind in the country, so far that hasn’t proven to be an issue. In fact, their newness has even led to some of Flint’s customers asking for demonstrations. Mattila says she enjoys obliging their requests, as it gives her a opportunity to connect with people and talk to them outside of a sales meeting environment. Besides, she loves talking about the technology and the project.

“It’s awesome to be first.”

Racking meets barcoding

As is evidenced by Flint’s quick adoption of the mobile pallet racking, company executives aren’t intimidated by technology, especially when it makes sense.

Now that the storage problem has been solved, Mattila and Archibald are ready to turn their attention to the next piece of technology that can add efficiencies to Flint’s processes: barcodes.

“I would love to see us have each bunk space barcoded and as a skid gets put into the rack it would be scanned in and scanned out of that position,” says Archibald.

According to Mattila, Flint already has some barcoding capabilities, but they’re being underutilized, in part because the corrugated box software that runs Flint’s equipment and acts as its ERP system didn’t have the ability to incorporate barcode information. At least it didn’t until very recently.

“I’ve checked into it, I’ve pushed the limits of our existing software provider’s development team and it’s definitely do-able. The capability exists. It did not a year ago, but I’ve quietly pushed for what I need.”

She envisions a system where every operator has a tablet on the tow motor and the ability to scan items directly to the tablet and feed the information into the main software system.

“They could have a list and every slot could have its own unique location ID. They’d be able to scan the load tag for every skid into a slot. So if the girls upstairs want to know where something is, they would know we’ve got 2,000 pieces of that item—500 in each of four slots, and know which slot numbers.”

While Flint has no specific plans to roll out a big barcoding project, that doesn’t mean it won’t happen.

“If it makes sense it’s really hard to keep me away from it,” says Mattila. “Water wears down the stone.”

Photos by Stephen Uhraney

The software is designed to pull information about demand at the store and SKU level and send it up the chain to vendors and manufacturers with the goal of eliminating out-of-stocks and reducing inventory carrying costs. It also incorporates historical performance data and seasonal trends into its inventory management and replenishment strategies.

Demand Chain Management supports time-phased automated replenishment and allocation functionality for multiple DC order levels as well as flow-through order replenishment and allocation. It has been created to support multi-echelon and omnichannel operations.

The software is implemented in a componentized fashion with the following modules available:

• allocation
• automated replenishment
• capacity planning
• contribution
• demand forecasting
• seasonal profiling
• intelligent product introduction
• time phased replenishment
• promotions management

Each module offers a range of choices and functions. The capacity planning module, for example, offers a 65 week view at the cube, case and pallet levels for all locations, and each weekly view can contain all (or a selection) of the following:

• Rollups at cube, case, pallet and dollars (retail or cost) for all order forecasts, for all locations, for a 65-week planning horizon.
• A corporate view of all product types for all distribution centres.
• Distribution centre views for all product types.
• Conveyable, non-conveyable, pallet and repack picking types.
• Pallet and bulk storage types.
• A store level view.
• A calculation of capacity usage and adjustments needed to stay within capacity.
• Results displayed in cube, cases and/or pallets quarterly, weekly, or over another specified period.

Dock equipment

All merchandise received and shipped from the DC will flow through the dock doors, so it is impossible to put too much effort into the planning and design of this feature. Dock spacing must be sufficient for trailer movement into and out of the docks and also must coordinate with the interior equipment layout. This becomes especially critical with high-capacity conveyors and sortation systems. Door openings must not restrict access for loading and unloading—but at the same time, must allow for seal and shelter installation. Dock plates need to be wide enough and long enough for the range of trailer sizes to be handled, and provide sufficient capacity for the equipment and loads to be moved in and out of trailers.

Storm management

Building contractors and designers typically place the rainwater leaders, sprinkler pipes, electrical conduits and ductwork on the same side of each building column throughout the facility, but this isn’t a necessity, and adhering to arbitrary positioning may impair the function of the DC. Facility capacity will be reduced if the building services interfere with racking installations. The rain water leaders, sprinkler pipes, electrical conduits and ductwork should be located so they do not interfere with any materials handling equipment installation. If a lift truck hits a sprinkler pipe it can set off the fire alarm, shut down all the automated equipment, and cause the evacuation of the facility. Additionally, after the water flow has been stopped there is the water damage and clean-up of wet product, water-soaked equipment and a large puddle or pond on the building floor.

A solution often used as protection for all rain water leaders in the shipping and receiving area is to install a U-shaped steel plate, which is about one metre (three feet) high and painted safety yellow to make it more visible.

Mobile power equipment and traffic flow

One key building design feature that shouldn’t be neglected is the height of doorways between building sections: doorways must be higher than lift truck masts. Depending of the type of operation, doorways may need to be over six-metres-high (20ft). If there is a lot of mobile equipment traffic between building sections, then installing two doorways with traffic lights to indicate one way traffic direction for each doorway improves product flow and makes for a safer environment.

Barriers, guarding, banger bars, railings and bollards can be installed to protect all mobile equipment door openings, dock doors, man-door vestibules, computer infrastructure cabinets and workstations to prevent staff injuries, product damage and equipment damage.

Interior walls can be protected using six inch by six inch by half-inch angle iron (or larger) lagged to the floor about 30cm (12in) away from the wall and painted safety yellow for visibility. These items are often overlooked. Additional planning with a small increase in cost will support long-time use, while protecting your investment.

A common obstacle found in large buildings is structural wind bracing. Working very closely with the building designer, carefully select these locations. “K” bracing that starts about four metres (12ft) above the finished floor is often used instead of “X” bracing to reduce the impact on operations.

Building Automation System (BAS)

Taking an integrated approach to all parts of the design is critical to a simple, energy-efficient design. One building automation system (BAS) to control all the ceiling fans, exhaust fans, heating systems and lighting is recommended. Having many complex and expensive systems all talking to each other may not be required. Instead, use an integrated approach which clearly defines the relationships and interdependencies of each building system.

The early involvement of the design team into all phases of a project can improve the final result and a few of the lessons we have learned are:

• The heating and ventilating roof top units should be facing downwind to avoid snow accumulation and wind driven pollen.
• Design the roof structural steel to allow duct work to pass through.
• “Right size” the heating systems for an efficient operation.
• The maintenance staff will appreciate it if you build full-width access stairways with a walk-out door onto the roof so it’s easier to carry filters, replacement parts and tools onto the roof.
• Install power outlets on the roof near any large heating or ventilating units for power tools and test equipment.
• Select fluorescent lights instead of metal halide lights. The initial cost is higher, but it usually takes less than one year to recoup that cost in electrical savings, and you will continue to cut costs over the years with a lower electric bill.
• In addition, you can turn lights off during the day if skylights provide enough light, and use motion sensors to turn light fixtures on and off.
• Continue to consider LED lights, since manufacturers are developing LEDs with longer bulb lifetimes and with better energy efficiencies.

From experience, we found that small ceiling fans work, but very large ceiling fans work much better. Air moved by a very large ceiling a fan—specifically a destratification type—provides a more comfortable environment for staff. An important note to remember is that the operation of a very large ceiling fan must be connected to the fire alarm system so it shuts down when the alarm sounds, allowing the ceiling-level sprinklers to do their job.

On the subject of a centralized uninterruptible power supply (UPS) system versus an electrical distribution system throughout the facility versus a decentralized system offering an equivalent quality, we are undecided. If there is a lot of change in the facility over time the decentralized system is preferred.

People flow

A painted floor path in a facility ensures the smooth and safe flow of people and mobile equipment. If you want walkway and area floor painting to last, all lines need to be shot blasted and painted with epoxy paint.

To make the environment even safer, consider using different line colours to indicate purpose or use. Yellow, for example, can be used for walkways, white could be for area limits or mobile equipment aisles, and red could be used for egress paths to building exits. Also remember the most effective and visible lines are four- to six-inches wide.

Basing your signage on the American National Standards Institute (ANSI) sign standards ensures your signs convey clear concise messages all your staff and visitors can comprehend. The ANSI standard consists of four elements: colour, signal word, image and text. This standard process for signage design communicates warning awareness, processes, hazards, and procedures employees or others may encounter while in a DC, and ensures that individuals are informed of their health and safety risks, and the protection/control measures they may use in order to conduct their daily jobs safely and effectively.

It’s also a good idea to provide in-plant offices since it improves the group work environment, enables better communication, and increases productivity. Locate operations managers within the physical operation and closer to their teams. Include the support facilities in your design—coat rooms, print rooms, janitor closets, kitchenettes, training rooms, lunch rooms, electrical panels and electrical rooms.

To maximize the utilization of the building space, you can construct two or more floor levels, but keep in mind elevators may be needed to be provide barrier-free access to these offices or mezzanine areas.

Having the right complement of knowledge, experience and skill collaborating on the facility design will ensure a better chance at delivering a useful product to your client. In our experience, the inclusion of a highly creative and experienced architectural firm is a valuable addition to the early design team. You may not have the luxury of commissioning an architectural firm to spearhead the design. However, in bringing this type of experience to the table early, you will be exposed to different perspectives on distribution facility design. A reputable firm is focused on introducing flexible design options based on industry best practices, as opposed to cost control principles. A careful balance of creativity, cost control and future, flexible operational efficiencies is best

Edward Stevens is the pseudonym of a Canadian retail supply chain professional with over 30 years of experience in the industry.

From the MM&D print edition.

The West Coast Marine LNG Supply Chain Project is described as a multi-stakeholder effort with the goal of understanding the “barriers to the use of liquefied natural gas as a marine fuel on the West Coast of Canada.”

The $1.2 million project is being run under the direction of the Canadian Natural Gas Vehicle Alliance and Marine Canada acting as lead consultant. There are 17 participants:

• American Bureau of Shipping
• BC Ferries
• BC Institute of Technology
• BC Ministry of Transportation–Pacific Gateway
• Canadian Natural Gas Initiative
• CSA Group
• Encana Natural Gas Inc
• FortisBC
• Government of Canada (Transport Canada, Environment Canada, Natural Resources Canada)
• Lloyd’s Register Canada Ltd
• Port Metro Vancouver
• Rolls-Royce Canada Ltd
• Seaspan ULC
• Shell
• Teekay
• Wärtsilä
• Westport Innovations

Beginning in the 2015-2016 shipping season, there will be changes to emissions regulations which will require vessels operating within Canada’s 322km (200-mile) territorial waters to use limit emissions of sulphur. LNG is seen as a fuel with the potential to help ship owners achieve lower emissions since it “emits no sulphur in the form of SOx and can reduce emissions of NOx and particulate matter by up to 80-90 percent. Greenhouse gas emissions can also be reduced by up to 25 percent compared with conventional marine fuels” according to information supplied by the West Coast Marine LNG Supply Chain Project.

But beyond its advantages, there are also challenges to using LNG in the marine industry. Currently, there are no Transport Canada safety regulations in place that regulate its nautical use. The government is, however, participating in the drafting of an international standard—the IGF Code for Low Flashpoint Fuels—by the International Maritime Organization.

For now there is also no common global LNG bunkering standard involving the transfer of fuel from an onshore facility, from a bunkering barge or from an LNG tanker truck. The International Organization for Standardization (ISO) is expected to release a draft technical guideline to address bunkering later this year.

“LNG bunkering is being considered by major ports around the world as one way to reduce emissions and enhance sustainability,” said Duncan Wilson, vice-president, corporate social responsibility, Port Metro Vancouver, “We are committed to growing Canada’s largest Gateway to the Asia Pacific in a sustainable way and LNG offers the potential to improve environmental performance and enhance our competitive position.”

In November, the project will issue a report addressing those concerns (among other regulatory issues). It will also document other aspects of LNG use including technology readiness, training, operational safety, environmental impact, and benefits to the Canadian economy.

They feature an external jackshaft motor that raises and lowers the doors at speeds of 91cm (36in) per second. TMI’s earlier models could only travel at 61cm (24in) per second.

The doors come in three models: Vinyl-Pro Roll-Up Door, Screen-Pro Roll-Up Screen and Bird-Pro Roll-Up Mesh Barrier.

The 6000 Series features extruded aluminum guide tracks and wind bars, a Save-T breakaway bar, a full-function Smart 10.0 logic control board, and a 24-volt Class 2 circuit with a 40-volt transformer. The doors are operated by an external radio control terminal strip and have a three-button (open, close and stop) station.

Options include a safety reversing edge, a pullcord station, remote control, and motion sensors. The Screen-Pro Roll-Up features a 17 by 11 weave mesh, suitable for keeping out insects.

The maximum door size is 4.3m (14ft) by 4.3m. The doors come in a variety of colours.

MHI, formerly known as the Material Handling Institute, is forecasting orders for new materials handling equipment to grow between five and six percent in 2013. MHI expects 2014 to exhibit even stronger growth, and projects an increase in sales of 10 percent or more.

This comes after a strong 2012 when materials handling equipment new orders grew 7.2 percent.

“As the current US economic expansion shifts from capital expenditure-driven to consumer-led, we anticipate modest, positive materials handling equipment manufacturing (MHEM) growth for 2013. Housing, automotive rebounds and expansion in industrial, warehouse and commercial buildings (over 69 percent between 2014 and 2018) will contribute substantially to improved MHEM growth for 2014 and beyond,” says Hal Vandiver, MHI executive consultant.

Shipments of materials handling equipment were also up last year. They increased 9.8 percent from 2011 and MHI predicts they will continue to rise. The Charlotte, North Carolina association forecasts a growth rate of 3.5 percent in 2013 followed by a 9.1 percent increase in 2014.

US domestic demand (shipments plus imports less exports) grew 10.9 percent in 2012 and is estimated to grow 3.4 percent in 2013 and just over 9.5 percent in 2014.

Despite the positive outlook, there were a few statistics that showed signs of weakness. MHEM trade growth slowed by more than 50 percent in 2012. US import growth in 2012 was 19.9 percent lower than the 2011 figure. US export growth was was 11.2 percent in 2012, down from 26.2 percent in 2011. MHEM imports and exports are expected to slow dramatically in 2013 and rebound modestly beginning mid-2014.

All figures come from MHI’s latest Material Handling Equipment Manufacturing (MHEM) Forecast, which is produced every quarter.

But attention isn’t anything new for Walmart. The project that earned Buna his nomination entered the media spotlight when the retailer introduced its supercube transport trailer to the public.

The supercube is a longer, lower trailer which can carry 30 percent more cargo. It’s mated to a cab-over-engine (COE) tractor with a dromedary (aka drome) box behind it. The drome holds four pallets, (about 10 percent of a trailer load) meaning the combined unit can haul 40 percent more cargo in one trip.

While longer trailers aren’t anything new—LCVs (long combination vehicles) are on the roads in a number of provinces—the combination of the longer trailer, which measures 18.4m (60ft, 6in), and the shorter tractor means the full rig is the same length as a standard tractor-trailer.

Michael Buna, Walmart Canada

“It’s not just a 60ft, 6in trailer,” says Buna. “There’s more to it than just that. We have LED lighting in it. We have low-friction tires. We have an aerodynamic drag system put on it with skirting and cab fairings. The hydraulic system that raises this trailer to bring it up to loading-dock height means we don’t need to have our vendors or our stores modify their loading-dock height to be able to work with this. It’s quite a tricked out set of wheels.”

Mississauga, Ontario-based Innovative Trailer Design (ITD) designed the hydraulic system that raises the trailer to dock height, the sliding drome box—which permits the tractor’s storage unit to move directly against the dock during loading and unloading operations—and the trailer itself. Walmart also worked with Ontario’s Ministry of Transportation (MTO).

The project began in March 2012, when Buna devised the concept. By November 2012, the company had MTO approval to run a pilot project and had the trailers and one truck ready to roll.

When the company unveiled the new trailer and the modified tractor (a 2003 model purchased used, since COE tractors are no longer manufactured in North America), the new design caught the attention of the trucking industry and the worldwide media.

Some of that attention, however, was less than positive. Representatives of the trucking industry in Ontario expressed concerns about how the pilot project was going to operate. Walmart owns the trailers, which it purchased from ITD, but the truck hauling them is owned by one of the company’s transportation partners.

“I guess there was a misunderstanding that Walmart was the one actually handling the trailer. We don’t actually own any tractors. We don’t have our own private fleet in Canada. Everything we do is through a third party. I think it was more of a misunderstanding that Walmart was actually going to be operating this equipment, when a third-party carrier would be operating this equipment and they would be the ones that would be held permitted with the equipment and be reporting into the MTO. If you’re asking me what was the biggest hurdle, that was it: channels of communication.”

The pilot, which allows the supercube to travel between the regional DC in Mississauga and a test store in Belleville, approximately 200km away, is expected to run for one year. “Our goal is to get it put into regulation. And not have it on a permit program.”

Buna’s other goal is to expand the program outside Ontario. Walmart has already entered into discussions with other provinces. In particular, Buna said the company would like to use them at the Calgary, Alberta distribution centre.

For complete MM&D coverage of the Walmart Supercube story click here.

FROM THE MM&D PRINT EDITION

The revamped interface also provides new navigational aids and formatting controls which make it easier to rearrange data.

The software suite from HighJump Software also has enhancements to its lot tracing functions, including new reporting tools that offer greater visibility to inventories during product recalls, and features that make it easier to process returns accurately.

Also part of the suite is an expanded portfolio of configurable voice solutions, including distribution voice-enabled workflow for areas such as picking, receiving and replenishment.

While the system has been configured to run on Windows 64-bit servers and thereby handle larger amounts of data better than previous versions, the Minneapolis, Minnesota-based company says it has also performed the engineering required to reduce the bandwidth demands the software places on the server by up to 75 percent.

Other code enhancements means that now users can access the software with any web browser, and not just Internet Explorer.

Looks, however, are often deceiving. The racking, which was visible to motorists on Ontario’s Highway 401 between Toronto and Mississauga, is actually the strong core of an automatic storage and retrieval system (AS/RS) built by Conestoga Cold Storage.

The Kitchener, Ontario-based company is a cold storage and distribution operation offering warehousing, trucking, storage, blast freezing, case picking, and import/export services to the frozen food industry. To offer those services efficiently, the company turned to automation with a hands-on approach. “We’ve actually been designing, building and installing our own stacker systems since 1980, said Conestoga president Greg Laurin in an interview conducted before the new AS/RS was complete. “Right now we’ve got 10 robots operating in Ontario, and we’re going to be adding an additional three with this expansion.”

Gavin Sargeant, vice-president of automation, says building its own systems is so important that Conestoga employs staff for that purpose alone. “The internal building group is dedicated to doing buildings specifically for us, so we have the expertise in engineering, in project management, system design, even programming the robotics, all in-house. It allows us to be very specific and very streamlined in getting these buildings up and running.”

This time, however, Conestoga tried a new approach. “For this building we’re working with other suppliers for the first time to get some different ideas,” said Laurin. “We actually spec all the equipment, all the rack design and then we have it built to our specifications.” Conestoga purchased racking for the AS/RS from Long Valley, New Jersey-based Frazier Industrial Company.

The size and scope of the construction are also new territory. “This is a large project. It’s one of largest projects we’ve done in one hit,” said Sargeant. “We’re putting three AS/RS robots in it. The initial building is about 500-ft long, so the length of the aisles is 500ft and the building itself is about 125-ft tall. This is the first building we’ve done at 125ft, so we’re increasing our cube utilization and our efficiency of land use by going higher,” added Laurin.

Construction began in May 2012 and phase one was completed by January 2013. The AS/RS added 10,000 pallet positions. Phase two, an extension large enough for 5,000 pallets, will begin in the spring. It will be erected so the two units can be joined and turned into a single AS/RS.

“What we do is we run the [phase one] aisle down 500 ft and we’ll cap a wall off on it,” explained Laurin. “Then in the spring, when the ground is thawed, we’ll continue on with the concrete slab. We’ll build the [additional] rack and enclose the building. Then we’ll cut a hole in the end of the building and drive the stacker right through towards the new part of the building.”

While punching holes in walls and joining two buildings seems daunting, Sargeant said it is fairly simple. “We make preparations for that during the building process. We make [it possible] for the racking of the extension to tie into the existing racking. The only time when we have to stop things and affect the operation of the existing building is when we cut that panel out in the middle and tie the two buildings together.”

The AS/RS stores frozen food at -18ºC. Inside the freezer, three robotic cranes process over 50 pallet transactions per hour each. They can pick two pallets at a time from a two-deep racking layout up to 100ft in the air.

They also operate completely in the dark. The only lighting in the building is emergency and task lighting in case the AS/RS needs repairs or a pallet needs to be checked manually. Laurin and Sargeant say the money saved on lighting plus other features—such as doorways with small entrances to prevent too much cold air from escaping and too much warm air from entering, and small roofs that reduce the amount of heat loss—make the AS/RS units much more energy efficient than traditional cold-storage facilities.

Update: As of May 2013, construction has begun on the second phase of the AS/RS, and once again, racking is visible to 401 commuters.

• 

  The first of two new AS/RS freezers was completed in January 2013

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  A second AS/RS will be built at the same location.

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  The two structures will be adjacent to one another.

• 

  When the second is completed, the walls between them will be knocked down.

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  Then the two units will become one AS/RS

FROM THE MM&D PRINT EDITION

The company is purchasing Richmond, British Columbia-based Epic Data International Inc. Epic Data produces software and hardware solutions designed for data collection and operations management in discrete manufacturing and warehousing control.

The $5 million deal will see Sylogist acquire 100 percent of Epic Data shares, its enterprise application software, and its customer contracts and relationships. What won’t be transferred is Epic Data’s Chinese business. That will become the property of a newly formed company, Epic Fusion Corp, which will be operated by Epic Data’s current senior management.

Jim Wilson, Sylogist’s president and CEO explained why he feels the acquisition is good for Sylogist.

“Epic Data is a well-recognized competitor to Sylogist in the enterprise application software field, with its manufacturing execution systems, data collection platform software, warehouse management application software and shop floor terminals, such as its recently unveiled UniView rugged tablet for mobile and shop floor applications. This acquisition is highly strategic and synergistic, giving us expanding operations in Canada, the United States and Europe, the addition of Epic Data’s Fortune 500 customer base to our own and a significantly enhanced technology platform.”

The transaction is expected to close on July 1, 2013.

It comes with an independent fork lift and can be ordered with either a fixed or rising platform configuration. The rising platform version comes with an operator sensing floor mat.

The LO2.5 comes with fully adjustable electronic power steering, automatic speed reduction during cornering, and an ergonomic control handle designed to reduce arm movement during direction changes. It has top-mounted mechanical disc brakes and a regenerative braking feature which reduces the use of the service brake and dissipates the heat of the traction motor.

While walking next to the truck, the operator can lift and lower the forks using buttons on each side of the LO2.5

The Hyster order picker is built with a welded steel box construction. Options on the unit include a creep control coasting function and adjustable performance settings. There are three levels of monitoring available: wireless monitoring, wireless access and wireless verification.

MM&D now posts daily news items to our website and tweets the news on our Twitter feed. We also shoot video.

Below is a list of original MM&D videos. They include demonstrations of innovative technologies at use in the Canadian supply and interviews with key players in the industry.

Christie Digital saves space with “vending machine”
Christie Digital uses VLMs to save space is its assembly room and store digital movie projectors.

Supply Chain Canada: Flowcasting and highlights
A discussion at Supply Chain Canada about what flowcasting is and how it works

Racking up a storage solution
Flint Packaging installs mobile pallet racks

Canadian 3PL thinks robots
Think Logistics turns to Kiva robots for a competitive edge

Canadian ports compete fairly: Lisa Raitt
US grievances against Canadian ports are a long-standing issue

Lisa Raitt discusses labour relations in the logistics sector
Says government is watching CN, Chorus and the Port of Montreal

Ports call on Hamilton
Association of Canadian Port Authorities holds annual conference in Ontario

Inside FedEx’s new facility
Business needs drive relocation and construction

Pival Expedite opening
New headquarters part of the company’s plans for growth

Supply Chain Canada: Interview with RF Pathways
Company releases update of its warehouse management software

Supply Chain Canada: Interview with Lean Supply Solutions
iPads ready for warehouse deployment

Supply Chain Canada: Interview with Second Foundation
New ERP system introduced

Interview with 2012 SCL President’s Award recipient Naeem Farooqi
Winner creates program to buy parts for eight transit authorities

Fashionable supply chain
DHL Express Canada helps designers send clothes down the runway at Toronto Fashion Week

Part of the service it offers customers it to keep supplies of boxes on hand for quick delivery, and while that prevents potential shipping problems for the clients, it caused a problem for Flint itself.  The company had run out of room in its facility to store the inventory, so it resorted to renting additional warehouse space.

Flint executives knew they needed to get a handle on the storage problem. They found their answer in a technological solution: mobile pallet racks from SSI Schaefer.

To read the full Flint story, pick up the March-April copy of MM&D. To see the racks in action, check out the video below.

To see more MM&D original videos click here for the full list.

The welded steel Roughneck Pallet Truck has an 8,000-pound capacity thanks to a heavy-duty support frame. It comes with 48-inch forks spaced 14.5 inches apart, and nylon-nose guide rollers on rounded fork tips. Its minimum lift height is 3.25 inches and its maximum lift height is 8.25 inches.

The pallet truck rolls on 3.25-inch poly-over-aluminum wheels and has a turning radius of 210-degrees. It has a cushion-grip handle with a three-position fingertip control area.

The truck weighs 185 pounds.

FROM THE MM&D PRINT EDITION

Warehouse management systems (WMS) and related software have gone through a number of design evolutions. If one goes back to ancient times, which is only a couple of decades ago, most warehouse management systems were in their infancy. Most were designed to operate mainly with paper-based systems, although a couple of providers had foretold the future with customized systems involving RF and barcode technology.

The core of many WMS systems was functional capability like:

• receipt processing, recording and exceptions (over, short and damaged);

• putaway and pick slot replenishment;

• less-than-full case order picking and packing;

• shipping and manifesting;

• inventory control (including in-warehouse location management, and lot control in some specialized cases);

• support functions like inventory counting, archiving and records, pallet control, etc.

Technology leaders that specialized in real-time applications also offered other solutions, like labour management programs.

Much of the software required lots of customization, which meant modifications to meet customer-specific needs were both time-consuming and expensive. Software was usually written in a hard-coded style with limited flexibility, so accommodating multiple customer needs was very difficult—if not impossible—unless the underlying code was very well designed.

This created another problem for vendors: with the continuing rapid evolution of computer hardware, updates to the software were continuously needed.

Many of these issues came to a head due to the Y2K software bug scare. New WMS software expenditure drastically dropped as companies gave priority to the immediate operating concerns and the upgrades needed to ensure Y2k survival. The result was a wave of industry consolidation amongst vendors which has continued to this day.

Compared to private industry warehouses, 3PLs face multiple customer requirements, including:

• Different practices and processes by 3PL clients within the same facility.

• Additional labour information to support accurate cost allocation and billing by the customer, and to avoid under- or over-billing.

• Information for such things as labour efficiency and tracking to support the marketing and sales staff in rate negotiations. This is a need not commonly found in normal private distribution centres, which often worry more about functional totals.

• Good stock location information, including capacity and occupancy by type of storage media.

• Varying billing practices for different clients.

• Demands for real time information by customers.

• Integration of WMS and TMS systems to operate multi-customer freight consolidation programs.

• Protecting customer confidentiality while dealing with a wide variety of supplier and retailer communication formats and styles.

• Efficiency needs and evolving data capture needs.

The average 3PL WMS vendor didn’t have the architecture to support many of these needs, leading to the growth of niche vendors who answered the demand.

After the Y2K consolidation mass customization rather than hard-coded software became the trend. This was often accompanied by business process engineering of customers’ processes and practices. In effect, this meant the software companies no longer tried to accommodate every customer’s need but offered a standardized profile. Mass customization also allowed for enhancements to be implemented independently of the underlying source code, greatly simplifying the updating and upgrading process.

With the industry consolidation there was also an effort to expand functionality into new areas. Today, those areas include:

• Order fulfillment, inventory sourcing and allocation from multiple sites.

• Engineered labour standards, particularly if combined with voice recognition.

• Slotting, location and capacity management.

• TMS and yard management.

• Trade partner integration.

For 3PLs, in their middleman role, communication integration with multiple parties has been an IT need for decades. This need has increased as large customers have levied heavy penalties for late deliveries, and as mobile devices have become common. Service-oriented architecture, in which independent devices, protocols, and platforms communicate with each other, has developed to meet the need.

For the smaller 3PL operator, software-as-a-service applications (SaaS)—which outsource the IT function—will prove attractive. While many companies have been reluctant to place data in the cloud, it is likely the ultimate step forward.

Dave Luton is a consultant in the greater Toronto area.

The PT45WAX-BT has a 2,040kg (4,500lb) lift capacity. It is powered by a 1.25hp driver motor and a 2.68hp lift motor. The 24v/210 AC motor is a parallel mounted with the wheel in an upright position to improve the turning radius.

Laden, the pallet truck can travel at 5.5kmh (3.4mph). It has a laden lifting speed of 1.9kmh (1.18mph) and laden lowering speed of 3.2kmh (1.97mph).

The pallet truck measures 185cm (73in) in overall length and 77.5cm (30.5in) in overall width. The forks are 120cm in length and reach a maximum width of 69cm (27in) in width.

In August 2012, Toyko, Japan-based UniCarriers Corp purchased control of all issued shares of Nissan Forklift Company Ltd from Nissan Motor Company Ltd. It also took control of all shares of TCM Corporation from Hitachi Construction Machinery Company Ltd.

Today, the fruition of those two deals has occurred as the two forklift companies have been blended together under the name UniCarriers Americas Corp. The new company is headquartered in Marengo Illinois and Peter Kruse is serving as UniCarriers president. The mandate of UniCarriers is to focus strictly on materials handling equipment.

While there may be some corporate shuffling, Steve Cianci, director of marketing and product management for UniCarriers, said Canadian TCM and Nissan customers shouldn’t see any major differences, at least in the short term.

“It should be seamless,” he said.

“It’s a merger of equals, but effective today, as far as support, product, people, processes, nothing has changed. From the market’s perspective, whether you’re in Canada or the US or any part of the Americas, it should be seamless, but with a business plan to grow and improve over the years.”

According to Cianci, there are no current plans to make changes at the dealership level.

“The Nissan forklift dealers will continue to carry Nissan forklift products and not TCM product. And the TCM forklift dealers will continue to carry the TCM-branded forklift trucks.”

Neither the Nissan brand nor the TCM brand will vanish. Instead trucks with both those names, as well as Atlet and Barrett vehicles, will gain an additional bit of script that adds “by UniCarriers” to the branding. That tagline is expected to last up to three years while the new company completes its transition phase. Warranties and servicing plans are to remain unchanged for now.