MM&D (Materials Management & Distribution) by Annex Business Media

March/April 2013 $8.00

Mobilizing the

bottom line

Flint Packaging installs mobile pallet racks to save space and money

Publication mail agreement #40069240.

Inside

3 Taking Stock 4 Supply Chain Scan 19 Canadian Food Chain 24 Equipment Focus: Forktrucks 27 Temporary Workers 28 SCL Presidentâ&#x20AC;&#x2122;s Award 29 Supply Chain Canada Conference 33 Legal Link 35 Materials Handling 36 Retail 38 Crunching the Numbers

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TAKING STOCK

Southern inspiration www.mmdonline.com PUBLISHER/EDITOR-IN-CHIEF: Emily Atkins (416) 510-5130 EAtkins@bizinfogroup.ca EDITOR: Carolyn Gruske (416) 442-5600 x3265 CGruske@bizinfogroup.ca ART DIRECTOR: Stewart Thomas (416) 442-5600 x3212 SThomas@bizinfogroup.ca SENIOR ACCOUNT MANAGER: Catherine Martineau (647) 988-5559 CMartineau@bizinfogroup.ca PRODUCTION MANAGER: Kim Collins (416) 510-6779 KCollins@bizinfogroup.ca CIRCULATION MANAGER: Barbara Adelt (416) 442-5600 x3546 BAdelt@bizinfogroup.ca

BIG MAGAZINES LP Executive Publisher t Tim Dimopoulos Vice-President of Canadian Publishing t Alex Papanou President of Business Information Group t Bruce Creighton HOW TO REACH US: MM&D (Materials Management & Distribution), established in 1956, is published 7 times a year by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd. EDITORIAL AND ADVERTISING OFFICES: 80 Valleybrook Drive, Toronto, ON, M3B 2S9; Tel: (416) 442-5600; Fax (416) 510-5140. SUBSCRIBER SERVICES: To subscribe, renew your subscription or to change your address or information, contact us at 416-442-5600 x3258 or 1-866-543-7888. SUBSCRIPTION PRICE PER YEAR: Canada $82.95 per year, Outside Canada $157.00 US per year. Single copy price: Canada $15.00, Outside Canada $32.65 CDN MM&D is published 7 times per year except for occasional combined, expanded or premium issues, which count as two subscription issues. ©Contents of this publication are protected by copyright and must not be reprinted in whole or in part without permission of the publisher. DISCLAIMER: This publication is for informational purposes only. You should not act on information contained in this publication without seeking specific advice from qualified professionals. MM&D accepts no responsibility or liability for claims made for any product or service reported or advertised in this issue. MM&D receives unsolicited materials, (including letters to the editor, press releases, promotional items and images) from time to time. MM&D, its affiliates and assignees may use, reproduce, publish, re-publish, distribute, store and archive such unsolicited submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. PRIVACY NOTICE: From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-800-668-2374, Fax: 416-442-2191 Email: privacyofficer@businessinformationgroup.ca Mail to: Privacy Office, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Printed in Canada Publications Mail Agreement #40069240, ISSN: 0025-5343 (Print) ISSN: 1929-6460 (Digital). We aknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities. MM&D is indexed in the Canadian Magazine Index by Micromedia Limited. Back copies are available in microform from Macromedia Ltd., 158 Pearl St., Toronto, ON M5H 1L3

s much as this is a Canadian magazine for the Canadian industry, there is no point in putting on blinkers and focusing totally inward. A good idea is often a good idea, no matter where in the world it originates. Our American neighbours have recently had such an idea, and I think it’s one that is worth some attention on this side of the border. A number of industry leaders and organizations, including the Center for Excellence in Logistics and Distribution (CELDi), the College Industry Council on Material Handling Education (CICMHE), MHI (formerly the Materials Handling Industry of America), and the Warehousing Education and Research Council (WERC), have come together to create an industry-wide strategy designed to increase productivity, reduce costs, create jobs and improve the global competitiveness of the American materials handling and logistics industries. After a nation-wide consultation and meeting process, the US Roadmap for Materials Handling and Logistics is set to deliver a list of definitive actions that should be completed in the next three, five and ten years. It is also designed to produce a comprehensive approach to educating government bodies and agencies about the key issues facing the industry, all while generating ongoing dialogue among participants in the industry. Although this is a large, complex task, it seems like one that’s well worth tackling. And I think it’s an approach that would work equally well in this country. As mentioned in the story about the merger between SCL and PMAC (page 4), it’s hard for the Canadian supply chain industry to make its voice heard. Because there are so many aspects to supply chain—from sourcing to transportation to warehousing and final delivery—and because every industry puts its own unique demands on its supply chain professionals, it’s almost impossible for anybody to see the big picture of the supply chain in Canada. As as result, it’s easy for governments, educational institutions and business leaders to be unaware of the needs of supply chain managers. Without the right insight or knowledge, it’s impossible to make plans, establish policies or create programs to help the art and science of supply chain management move forward.

March/April 2013 Volume 58 Number 02 14

Mobilizing the bottom line

Canadian Food Chain

Temporary fixes

SCL President’s Award

Flint Packaging explains why it installed mobile pallet racks

Conestoga Cold Storage builds a skyscraping AS/RS

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Managing seasonal and temporary warehouse workers

A controversial tractor trailer brings honours for Walmart’s Michael Buna 3

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SUPPLY CHAIN SCAN

PORTS

SECTOR COUNCIL

DEALS

KUDOS

Annual review of ports performance, p8

Canadian Supply Chain Sector Council loses federal core funding, p6

Contracts signed, deals completed, p10

Awards, recognition and praise, p7

The roar from a crowd SCL Canada and PMAC to merge By Carolyn Gruske

f two separate membership votes go the way executives from Supply Chain and Logistics Association Canada (SCL) and The Purchasing Management Association of Canada (PMAC) hope, the two will become one unified entity. The merger is being positioned as a positive step for the industry—one that will create a larger organization with a more authoritative presence. “There are a lot of associations out there in supply chain management. The voice of the industry ends up being fragmented,” said Cheryl Paradowski, PMAC’s president. “Our standpoint is it’s good for the industry because the challenge with the fragmentation—particularly if you’re looking at advocacy—is you don’t end up having one voice that has strength on behalf of the sector. It is vast and it is cross-sectoral, so it is understandable why it has developed the way it has—but we certainly think there is value in having one large, strong voice.” Alison Toscano, SCL’s executive director, echoes Paradowski. “I agree. Do you hear a squeak or a roar more? If you look at the smaller organizations, there aren’t enough members in any one place to have a significant impact if you’re into advocacy or just trying to make yourself heard. By combining forces it starts to build that voice for the industry.” According to Paradowski, the main advocacy goal of the united organization, which will be known as Supply Chain Management Association (SCMA), will be to “ensure the value the supply chain function brings to business is recognized”, and it will go about its task by conducting research into the industry, identifying and measuring key metrics, and providing “dollars and cents demonstrations” of the value the supply chain role provides to business. Along with the research aspect, the new body will offer career-training opportunities in ways that blend what the individual organizations offered. “PMAC has the formal designation at a couple of different levels. SCL has more informal programs 4

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and the networking. We have a strong student program and student case study competition, and when we put everything together, there was such a good mesh that covered all the different stages of career and all the different ways of engaging. It just made for the perfect pyramid,” said Toscano. One thing not expected to change is the Supply Chain Management Professional (SCMP) designation. “It was already designed to represent all of industry, but a big part of the value of our program is we do have an association full of subject-matter experts who continue to put the pressure on us to keep it current and keep it relevant. With the merged association, we will have a whole new pool of people who have specific expertise in logistics, for example, that may not have existed within the association before” said Paradowski. While Paradowski and Toscano agree there have been no major challenges in the process so far, Paradowski is aware both organizations must make strong efforts to ensure their memberships understand and welcome the change “Mergers of associations are definitely not like mergers of Cheryl Paradowski Alison Toscano companies, where, by and large, the major drivers would be economic. There are definitely emotional and ownership aspects that come into play when associations get together, which can sometimes be higher hurdles to cross. We have to make sure, through our communications efforts, that we can show all the members those things have been thought of and understood, and the lengths that will be gone to—particularly from the cultural perspective of the associations—to make sure that’s preserved.” Despite the desire for preservation, there are a few things that won’t be saved. The Mississauga, Ontario-based Supply Chain Canada conference will be scrapped. PMAC’s national conference, which is held in a different city every year, will be expanded. Staffing changes will also occur. SCL staff aren’t employed by the organization. Instead they work for Toscano’s association management company. As the new organization evolves, Toscano said some positions and resources may be transferred to SCMA. As for the organization’s leadership, Paradowski will be president, and Toscano will first work to transition the membership, the website and the various functions of SCL to SCMA, and will then take on some special projects. Initially an interim board made up of leaders from both organizations, will be created. There will also be an integration task force (with equal representation from SCL and PMAC) and a nominating and governance committee. Both groups are planning extensive communications campaigns to market the proposed merger to their members. While not exactly the same, the membership requirements for the two groups is very similar. MM&D | March/April 2013

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SUPPLY CHAIN SCAN

On course for supply chain training St Lawrence College offers certificate for university and college grads By Carolyn Gruske

tarting in September, people who want to work in a supply chain career will have another educational option.

The Cornwall, Ontario campus of St Lawrence College will be welcoming its first cohort of university and college graduates who are looking for some supply chain training. The three-semester graduate certificate program will be divided into two parts: two semesters of in-class instruction and one semester of job placement at a local 3PL or DC. Frank Lockington, director of the St Lawrence College Foundation, said students will graduate with a wide range of skills, from purchasing to materials handling to using computer-based logistics tracking tools. “When they come out they should be qualified to be a management trainee in any aspect of the supply chain,” he said. “The curriculum is actually based on what companies in the area have told us are their requirements, and an examination of what else is being offered across the country for curriculum at this level.” The program, which is the third in supply chain topics developed by the college in recent months (the others are an ongoing 15-week supply chain techniques course for entry-level workers and a nowfinished eight-week materials handling course for warehouse workers) has gone from idea to reality very quickly. “It was expedited for us. With a new program we’d normally have 18 months to get things up and running, but with what’s happening in the Cornwall region right now, the Eastern Canadian distribution centre for Target is scheduled to open in a few weeks, so their needs will be huge. Rather than wait a whole year for this to roll around, we’re going to try to bring in enough students to make it run in the first year,” Lockington said.

In addition to Target, Cornwall is also home to a Walmart Canada DC operated by SCM Inc and a Shoppers Drug Mart DC run by Matrix Logistics Services Ltd, adding to the heavy demand for supply chain employees. The curriculum has been approved and the Ontario Ministry of Training, Colleges and Universities has granted approval for the course. No teachers have been hired yet—Lockington said they will mostly be drawn from local industries and will teach part-time—but the student recruitment process is already underway. The college will be recruiting students locally and from across the country and further beyond. International students with a credential from their home country, can come to Canada, study for a year and then get a visa to stay in Canada and work for a year. The students will be ready for their placements beginning in April 2014.

“Our fee structures are very similar. The process is very similar. The major difference is SCL’s members are members of the national entity, whereas PMAC’s members are members of a local institute first and by virtue of that membership, they are a member of the overall national entity,” said Toscano. SCMA will follow PMAC’s model, with members joining the local organization and getting national membership as part of the package. What won’t be required, however, is for SCL’s members to earn a SCMP designation. “It will be voluntary [as it currently is for PMAC members]. If members wish to join just to be part of the organization and take advantage of the less formal education opportunities they are still able to do that—similar to SCL membership. But if they do wish to pursue the designation they have that option available,” said Toscano.

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SUPPLY CHAIN SCAN GLOBAL FOCUS Academic pursuit The Panalpina Group has partnered with the Cardiff Business School at Cardiff University in Wales. The partnership is to develop new logistics solutions that combine the best academic theories with knowledge gained through practical experience. In particular, the two organizations want to develop new Lean practices for managing complex supply chains throughout a product’s lifecycle. Dutch DC planned Waltham, Massachusetts-based Moduslink Global Solutions Inc is opening a DC in Venray, the Netherlands. The 15,000sqm facility will employ between 350 and 500 people. Modsulink provides storage, assembly and distribution services for consumer electronics and software companies. The company already has a branch in Apeldoorn. Partnership in Iraq MRC Global Inc has a logistics partnership with NAWAH (North America Western Asia Holdings) LLC. Houston, Texas-based MRC distributes pipes, valves and fittings to the energy and industrial sector. NAWAH is developing logistics operations in southern Iraq and restoring cargo and container handling capabilities at Maqal Port in Basra. The two companies will create a sales, service and delivery centre for oilfield equipment. Pallet storage for Red Bull Switzerland-based The Interroll Group will install high-density pallet flow storage systems in two new Red Bull DCs in Thailand. The facilities will come into operation later this year. There will be 25,472 pallet positions for FIFO (first in, first out) and LIFO (last in, first out) pallet flow storage in each DC. The FIFO sections each have 16,340 pallet positions with energy-saving gravity lanes accommodating 10 or 24 pallets, and a safety separator. The LIFO cart pushback sections will store 9,132 pallets in three-, four- or five-deep lanes. JLG gets Brazilian update JLG Industries Inc, a McConnellsburg, Pennsylvania-based arm of Oshkosh Corp, opened its newly renovated DC in Indaiatuba, Brazil. The 11,200-sqm site includes a renovated warehouse, which can house a larger parts inventory than previously possible. It has a shuttle order picking system. JLG produces aerial platforms and reach equipment.

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CSCSC loses funding Federal government cuts sector councils By Carolyn Gruske

he original Canadian Supply Chain Sector Council (CSCSC) is no more, but version 2.0 hopes to rise out of the financial ashes and find its way in a new economic reality. As of March 31, the federal government has stopped funding its $17.5 million Sector Council Program. To the CSCSC, and the other sector councils across the country, that means the withdrawal of $500,000 of annual core funding—money used to employ staff members, pay rent and run the day-today operations. The federal government describes sector councils as being “national partnership organizations that bring together business, labour and educational stakeholders. Operating at an arm’s length from the Government of Canada, sector councils are a platform for these stakeholders to share ideas, concerns and perspectives about human resources and skills issues, and find solutions that benefit their sector in a collective, collaborative and sustained manner.” Even with the disappearance of its main source of funding, CSCSC director Kevin Maynard insists the organization will continue to operate and offer services designed to fulfill its mandate. “The organization is continuing in a new format and we’re quite excited by it. What the new format does is let us respond to the new realities of the model we have to work under, which is reduced funding from the federal government but it still captures the amount of stakeholder involvement we have with employers, with employees and with professional associations,” he said. “The website will still operate, the phones will still work but we’ve actually gone virtual. We call it the Canadian Supply Chain Council Version 2.0 to put a bit more of a positive spin on it.” The organization will focus on its national accreditation program and one person will remain on staff to oversee the operation. Three of the council’s staffers, including Maynard, will continue to work for the organization, but as independent contractors. Before the cut took effect the council had five people on staff. Along with core funding, the federal government also offered funding to the sector councils for specific projects. Maynard says this type of project funding will continue to be offered, and the council will continue to pitch project proposals to the federal and provincial governments. He added the council has been asked to submit a proposal for a project that could be worth up to $1 million in federal funding over two years. Maynard said because the government announced its intentions to end the funding early enough, it has given the CSCSC time to react. “We’ve been building up a transition plan. We have what we call non-HRSDC (Human Resources and Skills Development Canada) revenue surpluses that will enable us to continue work in the short-term, and our fee structure for accreditation is enabling us to continue for the short term. After that we hope we are able to secure some of these projects we’ve been writing proposals for,” he said. Maynard seemed philosophical about the change in the funding structure. “A year or two down the road there might be opportunities for organizations like ours to come back, reinvigorated, provided we can continue with the work we do, which is what we’ve tried to ensure with this transition plan.” MM&D | March/April 2013

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SUPPLY CHAIN SCAN BENCHMARKS Toronto Pearson Airport has won the Air Cargo Excellence award from the International Air Transport Association (IATA). The award was presented at the IATA World Cargo Symposium in Doha, Qatar. The airline scored well in four categories: performance, value, facilities and operations in qualifying for the award. Orbis Corp, a manufacturer of reusable plastic packaging, named its Rexdale, Ontario facility as its plant of the year. The Oconomowoc, Wisconsin-based company is making an effort to become more environmentally sustainable, and said the Canadian facility made environmental upgrades to reduce overall water usage. It also improved on-time delivery, employee retention, and profitability, all while increasing annual shipments by nearly 20 percent. JH Ryder Machinery Ltd of Toronto, Ontario earned the title Dealer of Distinction from Clark Material Handling Company. The Lexington, Kentucky-based equipment manufacturer gave awards to its top performing North American dealers. Atlanta, Georgia-based UPS has inducted its 2013 Circle of Honour members. The award is given to drivers who have been accidentfree for 25 years or more. Seven Canadians made the list, and UPS

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Canadaâ&#x20AC;&#x2122;s top driver is Doug Coxon, who has delivered over 46 million packages during more than 35 years of crash-free driving. The Alberta Apprenticeship and Industry Training Board (AIT) has named Omar Salguero the top apprentice in the heavy equipment technician (HET) transportation trailer mechanic trade. Salguero is a licensed mechanic employed by the Calgary, Alberta branch of Trailer Wizards. The top apprentice awards are based on a combination of marks achieved during training, demonstrations of skills, dedication to the trade and an employerâ&#x20AC;&#x2122;s recommendation. Yale Materials Handling Corp of Greenville, North Carolina has located what it says is its oldest, continually operated lift truck. The Yale model K41-4M was purchased in 1966 by JA Cunningham for use in his York, Pennsylvania company. According to his son, Paul Cunningham who is now president of JA Cunningham Equipment Inc, the lift truck has never required major service and is still in limited operation. The International Warehouse Logistics Association (IWLA) awarded Jere Van Puffelen the 2013 Distinguished Service and Leader Award. Van Puffelen has served on the IWLA board and worked with the organization since the mid-1970s.

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SUPPLY CHAIN SCAN

2012 ports report Annual roundup of Canadian port activity By MM&D staff

Port Metro Vancouver The figure of one percent runs throughout Port Metro Vancouver’s year-end results. The total volume of cargo handled by the port—124 million tonnes—was up one percent in 2012 from 2011. The total foreign tonnage handled was also up one percent last year (to 96.8 million tonnes), as was total domestic tonnage (27.1 million tonnes). The port experienced a 29 percent increase in the volume of automobiles. In 2012 384,000 units were moved through the port. Breakbulk cargo was up four percent to 16.7 million tonnes, whereas bulk totals were down one percent to 83.7 million tonnes. Container traffic proved to be a high spot in the year-end figures, up eight percent over 2011’s figures to 2.7 million TEUs, which is a record for the port.

Prince Rupert Port Authority

Port Metro Vancouver

Year-end figures from Prince Rupert demonstrate strong growth in 2012. The total number of TEUs handled through the port was 564,856.65 compared with 410,469.25 in 2011, an increase of 37.6 percent. Loaded TEUs were up 32.7 percent (to 442,606.5) from last year, and empty TEUs were also up. They increased 58.9 percent over 2011 levels, reaching a total of 122,250.15. In total, 5,648,786.5 tonnes moved through the port in 2012, an increase of 37.62 percent over 2011 levels. Fairview terminal foreign container traffic rose 37.62 percent to 5,648,786.5 tonnes.

Port of Thunder Bay The 2012 results for the Port of Thunder Bay show a mixed year. Overall in 2012 the port handled 7,842,625 tonnes of goods. In 2011 the total was 7,608,692. While there was an overall increase, some cargo types were down in 2012. Coal and dry bulk were both down, but grain, potash liquid bulk and general cargo were all up. In 2012, 22,906 tonnes of general cargo was handled at the port, up from 17,313 tonnes in 2011. Last year 409 vessels—335 domestic ships and 72 foreign flagged ones—called at the port, compared with 390 in 2011.

Port of Hamilton The Port of Hamilton handled 10.3 million tonnes of cargo in 2012, which is three percent more than 2011. Overseas cargo increased 12.5 percent, while domestic/American goods were up 1.2 percent. Finished steel shipments were up 25 percent to 316,000 tonnes, and iron ore was up 15 percent to four million tonnes. Fertilizer was up 27 percent over 2011 volumes and six percent more grain was handled in 2012. Overall, the proportion of agricultural tonnage has doubled in five years, growing from eight percent in 2008 to 16 percent in 2012. Compared with 2011, the number of total project cargo shipments tripled in 2012. Windmill components, power plant process towers, rail cars and nuclear plant rotors were some of the items shipped through the port as project cargo.

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Supply Chain Scan

NEW

VNA Truck with Enclosed Cab

Port of Montreal Overall, the Port of Montreal suffered a very small decline in the amount of cargo handled last year. In 2012 the port handled 28,422,003 tonnes of goods. In 2011 the figure was 28,534,264. The difference is a 0.4 percent decrease. In terms of general cargo, 12,163,133 tonnes moved through the port in 2012— 12,032,966 tonnes in containers and 130,167 non-containerized— a 3.5 percent decline from the 2011 total of 12,471,002 tonnes. Liquid bulk was also down 9.7 percent between 2011 and 2012, but the port did see a 26.4 percent increase in dry bulk, from 5,172,846 tonnes in Port of Montreal 2011 to 6,537,448 in 2012.

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Port of Toronto

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Last year Toronto handed 1.86 million tonnes of cargo, which represents an increase of five percent over 2011. Overseas bulk was up 23 percent. Warehousing and project staging operations also experienced growth.

Port of Halifax The overall 2012 cargohandling picture from the Port of Halifax is similar to that of 2011. In 2012, a total of 9,490,961 tonnes passed through the port. In 2011 it was 9,486,612 Port of Halifax which means the 2012 number increased 0.05 percent over 2011. General cargo was up 13.6 percent in 2012 (444,494 tonnes in 2012 versus 391,126 in 2011). Bulk cargo was down 3.4 percent compared to the previous year. Containerized cargo accounted for 3,459,733 tonnes in 2012 and 3,309,205 tonnes in 2011—a 4.5 percent increase. Import containerized cargo was up 4.2 percent in 2012 to 199,633 TEUs, while export containerized cargo dropped 0.9 percent to 216,939 TEUs.

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St Lawrence Seaway Cargo was up four percent on the St Lawrence Seaway in 2012. Last year 39,055,466 tonnes were transported on the seaway. General cargo accounted for 1,578,012 tonnes (11.9 percent higher than 2011) with containers adding 34,122 tonnes— down seven percent from last year) to the total. There were 2,266 transits by loaded cargo vessels and 1,076 transits by ballast cargo vessels. MM&D

MM&D | March/April 2013

LANDOLL CORPORATION

MATERIAL HANDLING PRODUCT DIVISION mhpsales@landoll.com

800-428-5655 · WWW.LANDOLL.COM/MHP

SUPPLY CHAIN SCAN DONE DEALS

NEWS BRIEFS

Latham, New York-based Plug Power Inc is deploying 65 GenDrive fuel cell power units to Ace Hardware Corp to power Crown Equipment Corp lift trucks. The equipment will be used in Ace’s new retail support centre. The facility is currently under construction in Wilmer, Texas, and is to be completed in early 2014.

New DC for SLGA The Saskatchewan Liquor and Gaming Authority is relocating its liquor distribution warehouse. The current facility is too small to serve the province’s SLGA stores and its 600 private retailers, so a new warehouse is being constructed on a sixhectare (15-acre) site at the Global Transportation Hub in Regina. The 13,470-sqm (145,000-sqf) facility is expected to be operational by spring 2015.

San Francisco, California-based industrial real estate developer, Prologis Inc, has signed a deal with SpeedFC, a Dallas, Texasbased e-commerce service provider, to construct a built-to-suit distribution centre. The facility will be located in Etna, Ohio. It will be constructed with energy-efficient features and will be 770,000sqf, giving SpeedFC more than 1.3 million sqf of warehouse space in the US. Pittsburgh, Pennsylvania-based Seegrid has been chosen to supply robotic pallet trucks and tow tractors to Aisin USA Manufacturing Inc. The equipment will be used in Aisin’s one million-sqf Seymour, Indiana automotive manufacturing plant. The company has purchased five GT10 tow tractors and four GP8 double-length pallet trucks. An additional GP8 with a tugger attachment is also part of the deal.

CMHDS promotes safety The Canadian Materials Handling and Distribution Society (CMHDS) has signed the British Columbia Safety Charter. By signing the charter, the society has agreed to have its members commit themselves to working towards the goal of being corporately sustainable, while demonstrating leadership in their communities and establishing and fostering working environments to promote health and safety for all.

Richmond Hill, Ontario-based Tepper Holdings, an investment firm that wholly controls Consolidated Fastfrate and Canada Drayage has purchased the majority interest in Fastfrate Holdings Inc, a Woodbridge, Ontario-based transportation and logistics provider, from New York, New Yorkbased Fenway Partners. Fastfrate’s current management team will remain in place.

Coalition of Rail Shippers offers amendments to Bill C-52 Saying Bill C-52 doesn’t go far enough to address the problems of commercial rail customers, The Coalition of Rail Shippers has proposed changes to the Fair Rail Freight Service Act (Bill C-52). The Act is at second reading in the House of Commons and is before the Commons Standing Committee on Transport, Infrastructure and Communities. The coalition wants the terms “adequate and suitable accommodations” and “service obligations” more clearly defined—and defined to emphasize the railways’ commitments to the shippers. It also wants shippers to have the right to include a mechanism to determine when a service level agreement (SLA) has been breached.

Intelligrated, the Cincinnati, Ohio-based automated materials handling equipment manufacturer, acquired Datria Systems Inc Datria, based in Greenwood Village, Colorado, produces voice-enabled solutions for distribution centres and logistics operations. It will become part of Intelligrated’s Knighted software subsidiary.

Trailer Wizards expands Tractor-trailer sales, leasing and maintenance company Trailer Wizards opened a new branch in Winnipeg, Manitoba. The facility has 14 trailer bays, washing bays, a body shop and 5,000sqf for office space. The Mississauga, Ontario-based company will hire between 10 and 20 new employees to staff the Winnipeg branch.

Manitoulin Group of Companies has purchased Edmonton, Alberta-based Cratex Industries Ltd, a crating, packaging and export services company that services the Alberta oil and gas industry. Mississauga, Ontario-based Manitoulin will retain all Cratex employees, and former owner Ron Holdinga will continue as president.

Wheels Group adds branches Mississauga, Ontario-based Wheels Group Inc, a 3PL and transportation service provider, has opened offices in Halifax, Nova Scotia, Moncton, New Brunswick, and Los Angeles, California. The California office is designed to build the business of the company’s US-based Wheels MSM subsidiary. John Abate, vicepresident and general manger of Wheels MSM has been named first vice-president of the California Trucking Association.

Miami, Florida-based Ryder System Inc and Eagle Distributing of Shreveport Inc, based in Louisiana, have signed a fullservice lease agreement for compressed natural gas (CNG) tractors. Eagle will replace most of its diesel-powered delivery fleet with 23 CNG tractors from Ryder. Eagle expects the move will reduce its greenhouse gas (GHG) output by 24 percent. It also plans to replace some of its smaller fleet vehicles with CNG alternatives.

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New charter airline to fly in Nunavik Nolinor Aviation and Developpements Aputik Inc have formed a new charter air service. Uppik Aviation Inc is an Inuit-owned airline that will fly Boeing 737s and Convair 580s throughout the Nunavik region of Quebec. Besides carrying general cargo and passengers the airline has bulk fuel-hauling capabilities.

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SUPPLY CHAIN SCAN MOVERS + SHAKERS Vitran Corp Inc appointed David McClimon to its board. The Toronto, Ontario-based company offers less-than-truckload transportation services. McClimon is a past president of Conway Freight Inc. Maureen Macarenko has been appointed to the Prince Rupert Port Authority’s board. She will fill the vacant role designated for a representative of the City of Prince Rupert and the District of Port Edward. Macarenko is past president of GW Nickerson Co Ltd, a deep-sea ship agency and Customs brokerage. The Materials Handling and Management Society, based in Toronto, Ontario, elected its 2013 board of directors. Larry Phillips, director of logistics for the Hudson’s Bay Company, is president. Marc Spagnuolo, national fulfillment manager at Constellation Brands, is past president and chair advisor. Chuck Leon, warehouse specialist with Workplace Safety and Prevention Services, is treasurer. Mike Quinn, vice-president of warehousing and distribution at Giant Tiger, is secretary. Steven Bryce, vice-president of Reimer Associates Inc, is first vice-president/programs. Denis Pavlovic,

national accounts manager at GN Johnston Equipment, is director of membership. Rick De Jong, vice-president of Accu-Flex Safety Inc, is director of media relations, and Dennis MacDonald, general manager, commercial customer services, wholesale and retail systems at the LCBO, is director of strategic alliances. Stephen Brooks is president of the Chamber of Marine Commerce (CMC). Raymond Johnston, who served as president since 1999, is now executive vice-president of the association. The Conveyor Equipment Manufacturers Association (CEMA) has elected its officers for 2013. Warren Chandler, operations manager at Belleville, Ontario-based Stephens-Adamson, is the new president of the Naples, Florida-based organization. The Intermodal Transportation Institute at the University of Denver has two new members on its board: Mathieu Faure, vice-president of intermodal marketing and sales at CP and Keith Reardon, vice-president of intermodal services for CN.

PROFESSIONAL DEVELOPMENT DIRECTORY

HELP FOR EMPLOYERS …CREATED BY EMPLOYERS The resources available from the Canadian Supply Chain Sector Council were requested by – and created with significant input from – Canadian supply chain employers.

CSCSC tools can help you with: & Recruiting and retaining the right people & Assessing candidates’ education & Building training and development plans & Selecting continuing-education choices for employees & Evaluating employee performance & Establishing succession plans & Accessing and using labour-market information & Obtaining wage subsidies for new hires & Creating policies, how-to procedures, forms and more for everyday HR functions

www.supplychaincanada.org The CSCSC is funded by the Government of Canada's Sector Council Program.

MM&D | March/April 2013

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Professional Development Directory

INVEST IN YOURSELF. With training from OIPMAC throughout the year, you will gain more in-depth knowledge to help you manage your supply chain career. We offer a wide variety of supply chain management seminars throughout the year which will enable you to hone your communication and interpersonal skills. OIPMAC is pleased to present this new workshop coming this spring:

Collaborating for Improved Performance: Getting Along While Getting Things Done May 30/31, 2013 The balance between getting along and getting things done sounds simple, but can be frustrating. Learn how to understand and address the issues that impede workplace collaboration. Please call Carol Ship Spencer, Manager, Professional Programs, at (416) 977-7566 x 2146 to find out more information or visit www.oipmac.ca to register now and guarantee your spot!

MM&D | March/April 2013

Professional Development Directory Advertorial

It pays to know what you’re doing – and to have the proof on your resume The five specialized logistics courses from CITT provide the greatest depth and breadth of understanding of the silo-free integrated logistics business of any designation program in the industry. Materials Management pros will especially appreciate Logistics Processes, Integrated Logistics and Logistics Decision A professional designation from CITT is Modeling to strengthen their operational the most respected and widely held supply chain and logistics credential, outnum- competencies for more a more profitable supply chain and logistics system. And business There’s a lot at stake bering all others nearly 3:13 courses such as Organizational Behaviour can CITT knows you’re handling one of your be invaluable in sharpening managers’ people company’s biggest assets. And that you’re also CITT is also industry’s most attainable logisskills and their ability to motivate. responsible for the cost- and time-efficient tics designation: management of people, resources and ancillary • Only five expert-level, specialized courses are needed for professionals with a college/ Visit www.citt.ca for more information and costs associated with managing this inventory. to download your FREE guide to the logistics university degree We understand the decisions you make impact your customers and their continuing loyalty. It’s • World-class business education is available industry’s most respected source of professional training and most commonly held for professionals who need it a lot to manage, and a lot to master. • It’s accessible, with all required courses designation. And get you on your way to higher pay, enhanced professional credibility available online Fortunately, management believes in pro• It’s affordable and has the best ROI in the and other professional enrichments. fessional designations business Over 80% of employers will pay for the educaAre you responsible for the movement, distribution and storage of your company’s products? If you are, a professional designation from CITT can help you develop and demonstrate your expertise in warehousing along with the profitable management of materials within larger, integrated logistics and supply chain systems.

tion you need to obtain a designation.1 Human resources experts also report that companies are investing in specialized development of their people, even during tough economic times.2 And CITT can help you get smarter, faster.

Prove you’re a “Logistics Expert”—Add CITT to your professional credentials. And more value to your supply chain. Course work for CITT’s spring semester begins April 16th, and our fall semester begins September 3rd. Register now at www.citt.ca to guarantee your spot. ”2010 Salary Survey Results”, MM&D, September-October 2010. 2 Clayson, Tracy. “Learning Curve: What are you worth?” MM&D, October 2011. ”12th Annual Survey of the Logistics Professional”, Canadian Transportation & Logistics, January 2011.

supply chain & logistics

sustainability

MM&D | March/April 2013

Mobilizing the

bottom line

Flint Packaging installs mobile pallet racks to save space and money By Carolyn Gruske

Kari Mattila and Don Archibald are considering installing a second set of mobile pallet racks at Flint Packaging.

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lint 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 ondemand 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 dif 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, offsite 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 look 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— MM&D | March/April 2013

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machinery that cuts, shapes, glues and bundles the boxes—the space above the equipment was empty. “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 searchsearching 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 corrucorru gated 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 manumanu facturing 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 MM&D | March/April 2013

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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 concon sumes 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.

To see MM&D video of the pallet racks in action, go to http://tinyurl. com/FlintRack

The height of the mobile pallet racks allows Flint to make full use of the formerly dead space airspace in the building.

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SSI-Schaefer’s mobile pallet racks come with a numnum ber 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 therther mometer—and press the button. You have to do it

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.” 16

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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 calcal culations 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 orgaorganized, says Archibald. “It has given us a visual flag to improve our efficienefficien cies. We have a unique date-coding system. If everyeverything 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 MM&D | March/April 2013

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In their closed position, there is no access to the items stored on the inner shelving. Once they open, a standardwidth aisle is created

of the question. You’re adding an extra layer. You’re length. There is a lot of wasted space in there right getting rid of all the aisles. If you stick in more mobile now. Instead of 120in long, maybe we cut down to pallet racking, it almost compounds the usage area. 105in or 106in, but we’d have to talk about that.” Mattila agrees with the desire to buy more equipequip As to when the company will be ready to install ment. “I know I want at least one more for sure.” another system, that’s still up in the air. As much as they’re enamoured of the racks, “I don’t have any projected dates for that,” says Mattila. Archibald says he can see the next set being slightly “Now that I know it exists, as soon as I’m in a spot different from the original installation. when I have enough going through my plant to require “We’ve learned a few things we’ll probably change the rental of storage trailers—or the space on my floor a little bit for the next one. We’d change the rack is taken up and my volume goes so high I don’t have room to move due to incoming and outgoing matemate rial—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 mezmez zanine 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 strucstruc tural 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.” MM&D

between the shelves.

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Photo: Conestoga Cold Storage

Reaching for the sky Conestoga Cold Storage builds its tallest AS/RS yet

By Carolyn Gruske

rom a distance, the orange and blue racking looks delicate and fragile, resembling a creation built from an old Erector Set. Looks, however, are often deceiving. The racking, which was visvis ible 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 concon ducted 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 streamstream lined 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 equipequip ment, all the rack design and then we have it built to our specificaspecifica tions.” 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.

A special supplement brought to you by

MM&D | March/April 2013

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Sustainabilty at the loading dock Dock equipment raises the bar for food safety and sustainability By Steve Kalbfleisch

that provides a tight seal and helps operations sustain a clean, efficient warehouse environment is more important than ever. Vertical-storing dock levellers and air-powered dock levellers are unequalled in the industry for environmental control. Vertical-storing dock levellers mount directly to the loading dock floor and work in conjunction with insulated dock doors to prevent food contamination by allowing the door to be closed flush to the floor. Unlike conventional pit-style dock levellers, they eliminate the air and light infiltration around the leveller, effectively reducing the threat of spoilage and contamination. Air-powered dock levellers deliver safe, powered performance on the dock. They are built with an open frame and clean pit design to provide easy access to the pit floor for cleaning and scheduled maintenance. Perimeter seal: Dock leveller perimeter weather seals provide a superior seal along the sides and rear of the dock leveller to block dirt, debris, insects and pests from entering the facility. The innovative design closes off the gaps between the dock leveller and concrete pit walls that are typically missed by traditional weather seal or under-leveller seals attached to the front of the dock leveller. Dock seals and shelters: These products have been shown to have a significant positive impact when transporting perishable food items since the tight seal they provide helps maintain the quality of products in between loading and unloading. Dock seals and shelters provide an effective barrier against the eleele ments to keep loading docks safe and efficient. They provide a positive seal between internal and external environments, which keeps pests on the outside and a clean facility on the inside. Dock doors: There has been more attention recently on the dock doorâ&#x20AC;&#x2122;s ability to seal the opening in food and beverage operations. Doors equipped with a thick foam panel and compression bottom seal provide highquality thermal protection to preserve the warehouseâ&#x20AC;&#x2122;s temperature and also keep extreme weather and debris out. This helps maintain the integrity of perishable items and shields employees from weather conditions. A sealed loading dock area is key to a successful sussus tainability program. A properly designed loading dock system will enable operations to achieve safe food handling, which leads to sustainability. Product enters and leaves a facility through the loading dock area, where supply chain sustainability begins.

ood and beverage manufacturers and distributors rely on mainmain taining cleanliness, environmental control and a tight seal at the dock to survive in an extremely competitive market. These operaopera tions often run multiple shifts with tremendously high loading cycles, and require equipment that can stand up to the increased concerns of food-borne illnesses, allergens and contamination. Now that the focus on food safety is more about prevention than reaction, supply chain managers are looking carefully at the products they use every day for their loading dock operations. One of the best ways facilities can prevent food contamination is to use proper dock equipment, which can increase both safety and performance. And while most contamination takes place inside a facility, the best place to start prevenpreven tion is outside the facility on the loading dock. Vehicle restraints: One way to prevent contamicontami nation and keep products fresh is by using a vehicle restraint system designed to prevent a trailer from moving away from the warehouse loading dock. This premature depar departure breaks a tight seal, which opens up a facility to gaps along the dock door and leveller where unwanted dirt, debris and pests can enter. Available in both Vertical storing dock levellers with dock door. mechanical and powered models, the unique techtech nology, minimal maintemaintenance and easy operation help prevent this early departure and help mainmaintain a tight seal on the dock. Dock levellers: The dock leveller is the main piece of equipment that concon nects the inside of a facilfacil ity or warehouse to the Perimeter Weather Sealâ&#x20AC;&#x201D;Providing a superior perimeter seal back of the trailer. along the sides and rear of your dock leveller prevents energy Using a dock leveller loss, while blocking dirt, debris and insects. 21

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Steve Kalbfleisch is director of Canadian Sales for Dock Products Canada, a subsidiary of 4Front Engineered Solutions. MM&D | March/April 2013

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News Briefs • Air Liquide Canada of Montreal, a subsidiary of the Air Liquide Group, says its carbon dioxide production (liquefaction) plants in Canada have obtained Food Safety System Certification 22000. • GS1 Canada and GS1 US have jointly produced a publication designed as guidance for industry-wide adoption of a single standard for case labelling information for finished products. The aim of North American Industry Guidance for Standard Case Code Labeling for Extended Product Attributes is to enhance business efficiencies and improve product traceability along the supply chain. • Egg Farmers of Canada (EFC) has purchased routing and scheduling software from Dallas, Texas-based Paragon Software Systems. EFC will use the software to improve the efficiency of its field inspectors who audit and deliver biosecurity and animal welfare programs across 1,100 Canadian egg farms. • The British Columbia Egg Marketing Board is using IBM analytics to reduce workload, improve farmers’ profitability and ensure the safety and availability of the more than 816 million eggs produced in the province each year. • The Port of Hamilton in Ontario has become home to some of Canada’s largest grain handlers. The port recently attracted the 103-year-old Canadian-owned grain trading company Parrish & Heimbecker. Agricultural commodities transiting the port have

grown by 35 percent since 2008, and according to Hamilton’s Economic Development Office, agriculture is now a $1.3-billion engine for the city’s economy. • The Deloitte Center for the Global Food Value Chain has unveiled a series of research papers to help companies understand and comply with the Food and Drug Administration’s Food Safety Modernization Act, which was signed into law in January 2011. The papers can be found at: www.deloitte.com/us/foodvaluechain.

Products Refrigeration units Carrier Transicold has introduced its Supra 60-series truck refrigeration units. They feature improved performance and reliability, and include five single-temperature models: the Supra 560, 660, 760, 860 and 960 (with a refrigeration capacity of 32,000 BTUs at 35F).

Packing control Standard-Knapp has launched the 396 Positron Case Packer. The packer offers smoother and faster packing of carbonated, non-carbonated and hot-filled PET bottles into corrugated trays or plastic shells. The Positron comes with an Overhead Flight Grouper that provides accurate, positive product control and bottle packing.

YOU PERFECT IT. WE’LL PROTECT IT. Buckhorn offers an unmatched selection of reusable packaging solutions designed to protect your liquid handling products and increase your profitability. Buckhorn’s Caliber® Intermediate Bulk Containers are injection molded of FDA-approved materials and have smooth surfaces to satisfy the strictest standards. They collapse flat when empty or stack up to five high with a load capacity of 3,300 lbs. per container. Visit buckhorncanada.com to learn more about our full line of IBCs, and request a quote today!

US: 1.800.543.4454 Canada: 1.800.461.7579 www.buckhorncanada.com

BULK BOXES | HAND-HELD CONTAINERS | IBCs | PALLETS | SPECIALTY BOXES

THE APICS MONTREAL TEAM IS PLEASED to invite you to its 2nd Supply Chain Trade Show. This event will be showcasing the latest trends in storage and handling equipment, technology, transportation, services, etc. To get your free passes or for more information, please contact Mrs. Manon Cloutier at (450) 662-0055 or by email at secretariat@apicsmontreal.org.

IN COLLABORATION WITH

Supply Chain Trade Show - 2nd edition -

THE must-to-go event for supply chain professionals

May 23, 2013

from 1pm to 6pm at Palais des congrĂ¨s de MontrĂŠal

FORKTRUCKS & ACCESSORIES

New vehicles and technology 3

1 Hydraulic forklift

FH forklifts from Komatsu Forklift USA can handle loads ranging from 4,080kg (9,000lb) to 5,000kg (11,000lb). They are powered by an Interim Tier 4 and EU Stage 3A emissions-certified turbo-charged diesel engine. The hydraulic system uses a variable displacement pump with closed-centre load sensing (CLSS). The electronically controlled hydrostatic (HST) drive and control components permit directional changes without releasing the accelerator pedal. They run on pneumatic tires, and have an automatic engine shutdown system to prevent needless idling. The FH series’ turtle control switch offers four different speed settings.

2 Reach stacker

Stärke Material Handling’s ESR30ACX Lift Maxx AC Electric Walkie Stacker Reach Truck is designed for use in narrow aisles. It has a reach distance of 50cm (19.7in) and has forks that tilt two degrees forward and five degrees backward. The forks measure 4.6cm by 10cm by 105cm (1.8in by 3.9in by 41.3in) Two versions are available: one with a load capacity of 1,360kg (3,000lb) and a 1.5 tonne model. They are offered with a variety of options including sideshift, in-handle lift controls, electric power steering and a number of mast configurations.

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3 Updated features

Crown Equipment Corp has added three new features to the sit-down counterbalance forklifts in its SC 5200 Series. There is now the option to have a two-stage lift mast, optional fingertip and joystick hydraulic controls, and faster travel speeds for the 48-volt AC system. The SC 5200 Series has three models: 521X-30, 522X-30 and 522X-35. Their maximum capacities range from 1,361kg (5,000lb) to 1,588kg (3,500lb). They range from 1,173mm (46.2in) to 1,283mm (50.5in) in wheelbase length to 1,283mm (50.5in) and have an overall width of 1,067mm (42in).

4 Centre rider

The MO25 centre rider lift truck from Yale Materials Handling Corp is designed for second level order-picking operations. Its suspended platform has an operatorsensing floormat. The MO25 also comes with top-mounted electro-mechanical disc brakes and a feature that automatically reduces speed while cornering. The lift truck comes with a control handle designed to reduce arm fatigue and fully adjustable electronic power steering. The MO25 can be ordered with either a fixed or lifting platform with independent forklift and a scissor-lift option.

5 Low particulate emissions

The DP40N1-DP55N1 series of lift trucks are the first from Cat Lift Trucks to use the Perkins 854F diesel engine. The 854F is compliant with the EPA Tier 4 Final Standard for particulate emissions. The DP40N1-DP55N1 series has a 3,630kg (8,000lb) to 5,443kg (12,000lb) lifting capacity and runs on pneumatic tires. They come standard with hydrostatic power steering, LED front work lights and rear combination lights, and a presence detection system (PDS), which disengages the transmission and hydraulic functions when the operator leaves the driver’s seat.

6 Three mast choices

The G Series Pneumatic Tire Forklift from Heli Americas has a profiled steel overhead guard designed to incorporate optional embedded cab doors. The G Series has two diesel power options: a Kubota V2403 (producing 50hp at 2,500rpm) or a Kubota V3600 (producing 69hp at 2,400rpm). Depending on the model, G Series forklifts can handle between 907kg (2,000lb) and 3,175kg (7,000lb). Their maximum lift height ranges between 158in (400cm) and 418cm (165in). The G Series offers three mast options: a two-stage standard mast, a two-stage full free mast and a three-stage full free mast.

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Forktrucks & accessories

9 Safety light

The Blue Safety Light from Intella Liftparts Inc is designed to prevent pedestrian-forklift collisions. A spotlight featuring two blue LEDs projects a light on the ground to catch the attention of people walking in noisy environments. It is mounted to the rear of the truck. The light is constructed to be fully protected from dirt and resistant to water. It has a life expectancy of more than 20,000 hours. It produces nine watts of power and runs on multiple voltages (12-volt and 48-volt).

10 Increased power 7 Elevated platform

Big Joe’s J1 Joey Task Support Vehicle blends an elevated platform with features designed for order-picking and tugging operations. It can lift an operator 320cm (126in) off the floor and has a collapsed height of 63in (159cm). It has a total carrying capacity of 340kg (1,000lb); 227kg (500lb) in front, 136kg (300lb) in the operator’s compartment and 90kg (200lb) in the rear tray. The J1 is powered by a 24-volt AC motor with a Zapi transistor control. It has a 180-degree articulating driveline with a 183cm (72in) minimum turn radius

8 Laser-guided pallet truck

AGVPick Gen II is the redesigned version of Swisslog’s automated pallet truck. AGVPick uses laser-based navigation and can instantly switch between being laser guided and manually guided. It has a maximum load weight of 3,600kg and can travel two metres per second. It has built-in WLAN communications systems, can be directed by voice or RF commands and integrates with the host WMS. Gen II has a narrower design than earlier models, a built-in (not bolt-on) truck design, and is available in single-, double- and triple-pallet versions.

M AT E R I A L H A N D L I N G G R O U P

Max-Haul batteries from Crown Battery Manufacturing offers 20 percent more power in the same footprint as Crown’s traditional 85ah and 125ah cells. They have a redesigned plate and a new active material paste formula. The Max-Haul line includes a variety of cell types ranging from the 110MX with a rating of 0.427kWh at six hours to the 155MX-27 with produces 3.909kWh at six hours. They are designed to combine characteristics common to flat-plate designs (such as better distribution of lead mass and longer grid life) with tubular plate traits including good higher voltage electrical performance.

The Stärke family provides a solution for . . .

SELECTION • EFFICIENCY • ERGONOMICS • RELIABILITY • STRENGTH • VALUE From manual and electric pallet trucks and stackers, three and four wheel electric forklifts, and internal combustion engine forklifts up to 22,000lbs - every piece of equipment we sell is backed by a first class warranty, fully stocked parts department, and a dealer network with factory trained technicians.

. . . all your material handling needs

Stärke is German for ‘strong’ and it perfectly describes how we deliver in design, customer service and value. It describes our commitment to worker safety and to our product themselves, each built for years of trouble free service.

FIND A DEALER NEAR YOU • 1.877.435.4352 • www.starkecanada.com • www.starkeusa.com

KEYNOTE SPEAKERS ROBERT VALLENDER HEAD OF PHYSICAL LOGISTICS, NESTLÉ SA

AARON H. HUTCHERSON VICE-PRESIDENT, GLOBAL SUPPLY CHAIN, MCCAIN FOODS LTD.

BRUCE MCCUAIG PRESIDENT & CEO, METROLINX

SCL & CITA’s 46th Annual Conference

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Temporary fixes Seasonal workers are key to the success of busy DCs By Carolyn Gruske

he hiring of temporary workers is a permanent reality in the DC and warehousing world, even if the workers themselves aren’t permanent. While managing temps can be challenging, doing it properly can lead to more than a temporary improvement on the company’s bottom line. Brampton Ontario-based Best Buy Canada typically hires seasonal workers in July before the back-toschool season and in October/early November for the Christmas rush. Typically the company brings on at least 250 temporary workers every year. While there is a cost to hiring and training short-term employees, Best Buy Canada’s distribution manager George Calder says it’s money well spent. “If you were to weigh the training hours versus a safety incident, safety comes first for a whole number of reasons.” When Best Buy hires temps to act as materials handling equipment drivers, it puts them through an intensive training program, even if they already have an MHE licence. Typically they spend a whole day getting in-class training from Johnston Equipment (who Best Buy uses as a third-party trainer), then they put in 40 hours on the machine as practice— while being monitored—before they’re able to take their practical test to earn their licence. “From my experience it is a misnomer to cut corners on either accuracy or safety because then you lose efficiency. That’s the ironic piece. Short-term you may gain, but long-term, having well-trained individuals who know what they’re doing and doing it properly, you gain from that. So yes, in the short term there is a cost but through the entire season we are able to maintain our productivity to the levels we expect.” Best Buy does its own hiring, whereas the FGL Sports and Mark’s Work Warehouse divisions of Canadian Tire Corp Ltd take a mixed approach. They hire some on their own and rely on agencies to source the rest. Keith Lambert, senior vice-president of supply chain for FGL and Mark’s Work Warehouse, says that during FGL’s peak seasons (spring/summer and fall/ winter) the capability demands are strenuous. “We can see up to 100 percent more inbound in any given month. Those would be the times we rely on the temporary labour pool to assist in getting that volume through,” he said. “I would say that temporary flux would account for anywhere between 10 to 20 percent of the labour force.” Lambert says the key to ensuring agencies send the MM&D | March/April 2013

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right people over is making sure the personnel companies have a very deep understanding of FGL’s needs. FGL also invests in training. Every job function in the DC from picking to inventory control has a dedicated trainer who works with the temps. “Depending on what they’re there for and the complexity of the job, it could be anywhere from one day to upwards of a week.” While the temps could be seen as an extra cost of doing business, especially when they’re sourced through agencies, Tracy Clayson, managing partner of business development for Mississauga, Ontariobased In-Transit Personnel, says approaching the hiring with a better attitude helps a company get the most from its short-term hires. “The leaders of companies who recognize using the benefits of a temp agency solution or temporary workers usually have more success with those relationships than when it’s a grudge purchase. You have to understand it’s not a necessary evil. It’s actually a very good way to reinforce your capability and give you a competitive advantage, because your clients, your customers, your consumers—whoever you are providing your services and products to—want deliverables. The temp solution is there and it can be very effective if it’s properly managed. “So recognizing it as a crutch or diminishing your core competence is probably not the right perspective to have. However, if you haven’t managed the relationships well and your customers have felt the effects of poor temp service, then no, that’s not a stamp you want to wear proudly. But if you manage it properly then it should be seamless. Your customer service, your deliverables, that should all be very, very consistent. So the better you equip your staffing solution provider, the more success you’re bound to have.” Calder says having a positive attitude toward seasonal workers allows the relationship to be successful. “The management team goes to the orientation to welcome them on board because they’re what leads to us being able to deal with the volume we go through during Christmas. On a daily basis we’re doing three- to five-times the normal volume. And you obviously need the individuals to help you do that.” MM&D 27

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Controversial trailer leads to award Walmart Canada’s Michael Buna spearheaded the supercube project. By Carolyn Gruske To read MM&D’s full coverage of the Walmart supercube saga see http://tinyurl. com/walmart supercube.

Walmart Canada’s Michael Buna is the 2013 winner of the SCL President’s award.

Although it’s a Canadian program, Walmart’s American head office is paying attention to the results of the supercube pilot

inning the SCL President’s Award will earn Walmart Canada Corp’s Michael Buna national attention at this year’s Supply Chain Canada conference where the honour will be presented. 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-overengine (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. “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 loadingdock 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. MM&D

project.

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On behalf of SCL and CITA it is a pleasure to welcome delegates to our 46th annual conference. This is the fifth conference to be jointly organized by SCL and CITA. This year we have broadened the scope of material to be covered, embracing a more global approach. An inspiring mix of practical case studies, panel debates, expert sessions and interactive workshops will empower delegates to develop the skills and knowledge required to thrive in the supply chain and logistics industry. ALISON TOSCANO

EXECUTIVE DIRECTOR SUPPLY CHAIN & LOGISTICS ASSOCIATION CANADA

BOB BALLANTYNE P. ENG., PRESIDENT CANADIAN INDUSTRIAL TRANSPORTATION ASSOCIATION

Emphasizing our focus on the global impact of the supply chain, our conference agenda will feature several speakers from North America and Europe. Our opening keynote speaker, Robert Vallender is Head of Physical Logistics for Nestle SA International, based in Vevey, Switzerland. He will discuss the importance of awareness and preparation in relation to forces and events that affect global supply chains. We are also very excited to have the involvement of representatives from the Chinese, Indian and European communities who will discuss their own supply chain challenges. Case studies have always been an integral part of our program, allowing you to learn from industry leaders. We believe you will find our series of case studies, presented in the Technology, HR, Turnaround & Growth and 3PL tracks, very relevant to your business and professional development. We would like to extend our thanks to CIFFA, PMAC and the Schulich Executive Education Centre for working with us to provide the appropriate and relevant content for our agenda this year. As senior leaders in the business, we know a key part of attending our conference is the chance to reconnect with your peers - new and old, sharing experiences, challenges, opportunities and potential solutions. We are pleased once again to have our friends from Halifax Gateway Council sponsor the opening night gala this year, which is one of several opportunities delegates will have to network and connect with each other. Thank you again for joining us, we look forward to meeting as many of you as possible during the duration of our conference. We sincerely hope the topics discussed over the next two days will provide you with the opportunities you need to investigate, plan and develop ways to improve your own supply chain.

STEVEN BRYCE

VICE-PRESIDENT REIMER ASSOCIATES INC. 2013 CONFERENCE CHAIR

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C O N F ER ENC E K E YNOTE SP E AK E RS MAY 14 MAY 15 ROBERT VALLENDER

BRUCE MCCUAIG

HEAD OF PHYSICAL LOGISTICS, NESTLÉ SA

PRESIDENT & CEO, METROLINX TOPIC: ADVANCING THE BIG MOVE IN THE GREATER TORONTO AND HAMILTON AREA: A CONVERSATION ABOUT THE PLAN, THE PROJECTS UNDERWAY, AND FUTURE PROJECTS

TOPIC: INTERNATIONAL LOGISTICS – IS IT READY FOR THE NEW REALITY?

As Head of Physical Logistics for Nestlé SA, Robert Vallender is responsible for global distribution and transport from supplier to consumer. Based out of Nestlé’s international headquarters in Vevey, Switzerland, Robert has over 25 years’ experience with principle milestones including sales, marketing, procurement and supply chain.

Bruce McCuaig has functioned in a variety of roles involving land-use planning and policy, municipal policy as well as transportation planning, policy and operations. He has also served in various capacities of public office including the Ontario Ministry Affairs and Housing, the Ontario Ministry of Transportation, and as Deputy Minister.

DR. MICHAEL BLOOM

AARON H. HUTCHERSON VICE-PRESIDENT, GLOBAL SUPPLY CHAIN, MCCAIN FOODS LTD. TOPIC: GLOBAL OPERATIONS

Aaron Hutcherson leads the Supply Chain Planning and Logistics functions, as well as a global network of regional supply chain leaders for McCain Foods Ltd. With a career spanning over 35 years, Aaron possesses a very broad understanding of the supply chain industry based on his previous roles in manufacturing, human resources, sales, customer service and logistics.

VICE-PRESIDENT, ORGANIZATIONAL EFFECTIVENESS AND LEARNING, THE CONFERENCE BOARD OF CANADA Dr. Michael Bloom is responsible for managing five research groups: Organizational Effectiveness and Learning Research, Education, Health & Immigration Programs, Organizational Excellence, Governance and Sustainable Enterprise, as well as the Directors College. He oversees the funded research projects at the Conference Board and has management responsibility for nineteen executive networks.

THANK YOU TO OUR SPONSORS: PLATINUM

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LEGAL LINK

What is a bailment? Bailment relationship defines obligations and standards of care â&#x20AC;&#x153;A bailment is created when one person, the bailee, is voluntarily in possession of property belonging to another, the bailor. It is the duty of a bailee to take such due and proper care of the goods as a prudent owner may reasonably be expected to take of his or her own goods. If the goods are lost or damaged while they are in possession of the bailee, the burden is on the bailee to show that the damage occurred without any neglect on the part of the bailee or its employees.â&#x20AC;?

Marvin Huberman

â&#x20AC;&#x201D;Halsburyâ&#x20AC;&#x2122;s Laws of England

In the transportation and distribution sectors, there are many business arrangements that involve a bailmentâ&#x20AC;&#x201D;the transfer of possession of propertyâ&#x20AC;&#x201D;including (but not limited to): t 5IF TUPSBHF PG HPPET PS FRVJQNFOU JO B XBSFIPVTF boat or fuel storage facility, grain elevator, or even B QBSLJOH MPU XIFSF UIF LFZT BSF HJWFO UP UIF QBSLing lot operator in return for a receipt/ticket containing the terms of the bailment). t 5IF DBSSJBHF PG HPPET CZ B DPNNPO PS QSJWBUF carrier. t 5IF QMFEHF PG WBMVBCMFT PS TFDVSJUJFT BT DPMMBUFSBM for a loan. t 8IFSF HPPET BSF MFGU XJUI DPNQVUFS FMFDUSPOJD appliance, and/or motor vehicle repair facilities. " CBJMNFOU DPOTJTUT PG UIF GPMMPXJOH t %FMJWFSZ PG UIF HPPET CZ UIF CBJMPS VTVBMMZ UIF PXOFS UP UIF CBJMFF UIF QFSTPO XIP UBLFT QPTTFTTJPO t 1PTTFTTJPO PG UIF HPPET CZ UIF CBJMFF GPS B TQFDJGJD QVSQPTF t 4VCTFRVFOU SFUVSO PG UIF HPPET UP UIF CBJMPS JO BDDPSEBODF XJUI UIF CBJMPS T JOTUSVDUJPOT 5IF UXP NBJO UZQFT PG CBJMNFOU BSF t " HSBUVJUPVT CBJMNFOU XIFSF UIFSF JT OP DIBSHF made by the bailee. t " CBJMNFOU GPS SFXBSE XIFSF UIF CBJMFF SFDFJWFT B fee for storing, repairing, transporting, handling, or holding the goods. 5IF MJBCJMJUZ PG FBDI PG UIFTF QBSUJDVMBS CBJMFFT XJMM vary according to the nature of the specific bailment SFMBUJPOTIJQT UIBU FYJTU CFUXFFO UIF QBSUJFT BOE BOZ statutory provisions applicable to the circumstances. Canadian Courts have consistently held that the standard of care and diligence imposed on a gratuitous CBJMFF JT MPXFS UIBO UIBU SFRVJSFE PG B CBJMFF GPS SFXBSE A number of Canadian Courts have held a gratuitous bailee is liable only if gross negligence is proven. A CBJMFF GPS SFXBSE IPXFWFS NVTU FYFSDJTF EVF DBSF for the safety of the article entrusted to him or her CZ UBLJOH TVDI DBSF PG UIF HPPET BT XPVME B QSVEFOU QFSTPO PG IJT PS IFS PXO QPTTFTTJPOT *G UIF CBJMPS DBO QSPWF UIF HPPET XFSF EBNBHFE PS MM&D | March/April 2013

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MPTU XIJMF JO UIF QPTTFTTJPO PG UIF CBJMFF UIF CBJMFF must prove either he or she took appropriate care of them or his or her failure to do so did not contribute UP UIF MPTT 5P FTDBQF MJBCJMJUZ UIF CBJMFF NVTU EFNPOTUSBUF UIF MPTT XBT TVTUBJOFE XJUIPVU BOZ GBVMU PO his or her part. If the bailee is unable to establish a reasonable explaOBUJPO GPS UIF MPTT PS DBOOPU TIPX UIF EBNBHF XBT not a result of his or her negligence, then the liability GPS UIF MPTT XJMM MJLFMZ CF JNQPTFE PO UIF CBJMFF TVCKFDU to a valid and enforceable exemption clause in the bailment agreement, limiting or extinguishing the CBJMFF T MJBCJMJUZ 5IFSFGPSF XIFO B CBJMNFOU JT BU JTTVF UXP RVFTUJPOT are critically important: First, is it a gratuitous bailNFOU PS B CBJMNFOU GPS SFXBSE 4FDPOE XBT UIF CBJMFF OFHMJHFOU FJUIFS HSPTTMZ PS PSEJOBSJMZ Of course, each bailment relationship depends on JUT PXO TQFDJGJD GBDUT BOE DJSDVNTUBODFT JODMVEJOH the terms and conditions, expressed or implied, of UIF DPOUSBDU PG CBJMNFOU XIJDI NBZ PS NBZ OPU DPOUBJO BO FYFNQUJPO DMBVTF JO XIJDI UIF CBJMFF NJHIU attempt to limit liability in the event of loss. Furthermore, certain bailees may have a statutory duty of care for the goods of the bailor and an obligation to transport or store the goods of the bailor in a QBSUJDVMBS GBTIJPO PO B TUBOEBSE PG DBSF XIJDI JT tantamount to being virtually an insurer of the goods. It is critically important for the business relationship UP CF EFGJOFE BU UIF PVUTFU XJUI DMBSJUZ BOE DFSUBJOUZ of terms so the parties understand the nature of the bailment and their respective rights and obligations. 5IFO JG UIF HPPET BSF MPTU PS EBNBHFE XIJMF UIFZ BSF in possession of the bailee, he or she may better be BCMF UP TIPX UIF EBNBHF PDDVSSFE XJUIPVU BOZ OFHMFDU PO IJT PS IFS QBSU PS UIFJS FNQMPZFF 5IF CBJMPS XJMM also be in a better position to protect itself from actual and potential loss or damage arising from the transfer of possession of its property to the bailee. MM&D Marvin J. Huberman, LLM, is a Toronto lawyer, mediator and arbitrator. www.marvinhuberman.com 33

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MATERIALS HANDLING

Palletless handling equipment Options to help eliminate pallet handling

ld-fashioned wooden pallets still retain their dominance when it comes to handling unit loads, but there are a number of palletized and nonpalletized substitutes also available. The non-palletized alternatives have been around for a long time, but traditionally have only played a key role in a few industries. Today, however, with the increasing restrictions on the cross-border movement of untreated wooden pallets, non-palletized alternatives may deserve a second look. Forklift attachments form half of what is commonly referred to as “palletless material handling systems”. Packaging and unitization equipment comprise the other half. There are three main unit load attachments for the most common palletless systems: t Basiloid attachments for top-lift handling systems; t Clamp attachments which work through the application of side pressure (like a bear hug); t Push-pull attachments (used with slip sheets) for bottom-supported systems. In addition to these more common palletless handling systems, there are attachments or forks for specialty unit loads like: t large tires; t wine barrels; t beer kegs; t concrete blocks or bricks; t load transfer stations for transferring between pallets; t carpet booms or steel coil handlers. There also numerous types of non-unit load attachments including: t Sideshifters, which shift forks from side to side; t Double pallet handlers for handling multiple pallets at once; t Fork positioners, which move forks to handle different sized pallets; t Turn-a-fork and layer pickers for layer picking applications. These can result in four-fold productivity increases over conventional case picking; t Rotators, which rotate or invert loads for dumping waste or semi-bulk industrial loads (ie for food handling); t Load transfer stations for transferring loads from one pallet to another. The main palletless systems—top-lift Basiloid (for handling large household goods)—are most commonly found in the appliance industry. In this industry, cartons come with a folding cap and standard lift truck forks are replaced by an adjustable lifting MM&D | March/April 2013

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blade that fits under the lid of the folded-cap carton. The blade can be adjusted to slide up and down the fork carriage, lifting the carton by the top instead of from the bottom with traditional forks. The Basiloid attachment can operate in confined spaces and offers tighter turning than traditional forks. Like many specialty attachments, it is most effective if all of the links in the supply chain adopt this type of handling. Clamp attachments commonly come in two types: carton clamps and specialty clamps. All clamps work through the use of side pressure, which means the packaging must be constructed with sufficient strength to withstand the pressure from the side, in addition to traditional top-to-bottom compression. Specialty clamps are designed to meet the needs of a specific industry. A good example is the clamps built to handle large rolls made by paper manufacturers. Other examples of specialty clamps include bale clamps for products as diverse as baled wood pulp, metal scrap, hay, wool, and cotton bales. Drum clamps are used with 45-gallon drums and are extensively used in the chemical industry and wherever drum handling is needed. Carton clamps have a larger blade than most bale clamps and have an inner rubber liner to assist with gripping smaller cartons. They are typically used with light-weight products like paper tissue or breakfast cereal that cube out in transportation vehicles rather than weigh out. In this case, eliminating the pallet can lead to more efficient use of the cargo space and, as a result, more efficient transportation networks. The push-pull attachment is used with solid boxboard sheets of corrugated, called slipsheets. The slipsheets are scored so they can be folded and, ideally, taped to the side of a unit load when shipped, so the receiver’s push-pull gripper bar can clamp the edge of the slip sheet. Through a combination of pushing and pulling, the unit load is slipped onto the large, thin forks, which are called platens. As the slipsheet does not have strength to support the load, the platens are much wider than normal forks. When it comes time to offload the slipsheeted load, the front platen pushes the load off and onto the top of another load for block-stacked product or a pallet, for racked product. As with carton clamps, slip sheets are ideal for moving lightweight products that cube out quickly. MM&D

Dave Luton

Dave Luton is a consultant in the greater Toronto area. dluton@cogeco.ca 35

13-04-12 4:43 PM

RETAIL

Building design—Part Two Wrapping the building around the materials handling solutions

his is the second part of an article that ran in the January-February issue of MM&D and online at http://tinyurl.com/BuildingDesign1. The first part discussed how questions of column spacing, ceiling clearance heights and flooring should be approached.

Dock equipment To see the article that ran in the January-February issue of MM&D, go to http:// tinyurl.com/ BuildingDesign1

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 36

02MMD-rt.indd 36

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: t 5IF IFBUJOH BOE WFOUJMBUJOH SPPG UPQ VOJUT TIPVME be facing downwind to avoid snow accumulation and wind driven pollen. t %FTJHO UIF SPPG TUSVDUVSBM TUFFM UP BMMPX EVDU XPSL to pass through. t i3JHIU TJ[Fw UIF IFBUJOH TZTUFNT GPS BO FGGJDJFOU operation. t 5IF NBJOUFOBODF TUBGG XJMM BQQSFDJBUF JU JG ZPV CVJME 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. MM&D | March/April 2013

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MM&D | March/April 2013

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13-04-12 4:46 PM

Crunching the Numbers

Global

Ranked #1

ď ľ Most costly outcomes of risk events in the supply chain

Ranked #2

Vulnerability

By increasing the global reach of their supply chains, businesses have reduced costs, improved product quality and added agility to their processes. But hand in hand with those advantages are the increased exposures to risks, business disruptions and points of failure that come with international expansion. New York-based Deloitte Consulting LLP surveyed over 600 business leaders across North America, Europe and China for its study The Ripple Effect: How manufacturing and retail executives view the growing challenge of supply chain risk, to create an overview of the changing nature of supply chain vulnerability.

32% 22%

15% 25%

19% 17%

Margin erosion

Sudden demand change

Physical product flow disruption

17% 15%

10% 11%

7% 10%

Product quality failure

Regulatory noncompliance and/or worker-safety failure

Social responsibility failure

48% of the executives said the frequency of risk events that had negative outcomes has increased over the last three years. Only

21% reported a decrease.

Asia - Other: 7% Northern & Western Europe: 34% USA & Canada: 40% Eastern Europe: 16%

Asia - China: 34%

Asia - India: 10%

Mexico, Central America & The Caribbean: 13%

Northern Africa: 7% Middle East: 7%

Southeast Asia: 12%

Australia & New Zealand: 5%

Other: 3%

Sub-Saharan Africa: 4% South America: 8%

ď ľ Geographic regions causing the most costly outcomes from risk events in the supply chain

Crunching the numbers is an editorial feature sponsored by YOUR COMPANY NAME and LOGO here. Contact Emily Atkins at 416-510-5130 or eatkins@bizinfogroup.ca for more information. 38

MM&D | March/April 2013

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