Logistics & Materials Handling April 2013

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VOL43 ISS2 APRIL 2013

Industry News Supply Chain Bulk Handling Factory Materials Handling Inventory Management

Post Print Approved PP352583/00436

Innovative drive solutions to get you moving

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*AITA Statistics Ytd December 2012

AD_LMHTOYAPR_13.pdf

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This issue April 2013

bulk handling New schemes are set to aid miners in reducing their trucks’ carbon footprints

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contents 04 Bulletin Board

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VOL43 ISS2 APRIL 2013

Industry News Supply Chain Bulk Handling Factory Materials Handling Inventory Management

Innovative drive solutions to get you moving

Women celebrated in QLD’s logistics sector $1.6 billion Melbourne Port redevelopment approved

06 Training Supply Chain School opens in Sydney

08 Trends & Developments

Storage and sequencing Handling dangerous goods Hydraulic press

20 Inventory Rough terrian telehandlers

21 Safety New safety guide

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SEW-EURODRIVE’s automation and drive technology brings the world around us to life. From running the conveyors and bottling machines that make your favourite soft drink, to whisking away your luggage at the airport, SEW makes it happen. In fact, just about anywhere in the consumer and industrial world you see motion, SEW-EURODRIVE’s innovative range of motors and drives are likely to be in the background providing that motion. With 24 hour emergency service and support, SEW is always there to keep you moving.

27 Technology Mobile resource management

technology Safety, efficiency and improved service levels are all imperative in the management of mobile resources

27

Visit www.sew-eurodrive.com.au for more information, or phone 1300 739 287 to be directed to your nearest office.

ASSOCIATE PUBLISHER: Martin Sinclair e martin.sinclair@reedbusiness.com.au EdITORIAL CO-ORdInATOR: Hetaal Badiyani t 02 9422 2898 e hetaal.badiyani@reedbusiness.com.au GRAPHIC dESIGnER: Justine Dunn t 02 9422 8696 e justine.dunn@reedbusiness.com.au KEY ACCOUnT MAnAGER: Tim Richards t 02 9422 2818 e tim.richards@reedbusiness.com.au QLd AdVERTISInG MAnAGER: Sharon Amos t 07 3261 8857 m 0417 072 625 f 07 3261 8347 e sharon.amos@reedbusiness.com.au PO Box 3136, Bracken Ridge, Qld 4017 PROdUCTIOn CO-ORdInATOR: Mary Copland t 02 9422 2738 e mary.copland@reedbusiness.com.au

logisticsmagazine.com.au

Carbon free trucks From port to pit: transport companies thinking smarter Maintaining mature crane stock

Managing warehouse systems

27/02/13 4:12 PM

All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher.

ISSN 1832-5513 Copyright Reed Business Information. Published by Reed Business Information. (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia t 02 9422 2999 f 02 9422 2966. Printed five times a year, Logistics & Materials Handling is inserted in the February, April, July, September and November 2013 issues of Manufacturers’ Monthly, FEN, Australian Mining, Electronics News, Food, and PACE magazines with a distribution of 34,000.

24 Bulk Handling

28 Warehousing

Post Print Approved PP352583/00436

Truck accidents increasing

10 Factory Materials Handling

FOLLOw US On

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Average Net Distribution Period ending September 12 34,409

April 2013 Logistics&MaterialsHandling | 3

LMH.APR13.PG004.pdf

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bulletinboard logistics and materials handling news from aUstralia and aroUnd the world

Women celebrated in QLD’s logistics sector the QUeensland trucking

who clearly value (the) important

association (Qta) celebrated

role of women in the freight task.

international women’s day with

“women make a significant

a ‘women in road transport’

contribution to the transport

Breakfast last month.

and logistics industry, and the

international women’s day

Qta international women’s day

is held annually on march

breakfast is a unique event in

8, celebrating women’s

the australian trucking industry

achievements throughout history

calendar that recognises their

and across different countries.

contribution.

Qta used the day to

“the considerable efforts

celebrate the role of women in

made by women in the trucking

the freight industry.

industry, and the increasing

Qta chief executive officer

presence of diversity in the

Peter garkse said it was a great

industry will be discussed by

chance to acknowledge the

a panel of industry champions

contribution women make to

who are leading the way with

the industry.

gender inclusion, diversity

the Qta’s event was a way of

consider the sector as a career

we’re committed to encouraging

initiatives and workforce

celebrating the achievements

choice.

more women to join our company

development in the industry.”

of women throughout the

“the event is in its second year and continues to attract strong support from the industry and our association corporate partners

“transport and logistics has

and to provide the necessary

transpacific industries chief

road transport industry, while

traditionally been a predominantly

support to ensure they excel in

Keven campbell said supporting

encouraging more women to

male industry. at transpacific,

their careers with us.”

$1.6 billion Melbourne Port redevelopment approved

Transport and logistics company posts record profit

Victoria’s $1.6 Billion Port capacity Project has been given the go ahead with works set

moUnt gamBier-Based

to commence at melbourne’s

transport company K&s

our traditional eastern states

webb dock.

corporation posted a record first-

businesses, although challenges

half profit of $10.1 million due to

remain,” he said.

the Port of melbourne corporation will be required to

solid performances in wa and the

comply with strict environmental

eastern states.

standards to protect the bay,

the company also posted

“this pleasing trend includes

stevenson pointed to the decline in manufacturing and the slowdown facing the mining

waterways and the natural

revenue growth of 8 per cent

sector for causing domestic

environment.

to a record $293.5 million,

economic uncertainty.

the planning process and

adelaidenow.com reported

amendments to the planning

despite operating in all

scheme calls for the construction

the group has three operating segments - provision of logistical

australian states as well as new

services to customers within

of noise walls and a landscaped

be designed and constructed

to provide the highest level of

Zealand, the company said

australia, provision of logistical

buffer to reduce the impacts

fulfilling the Port of melbourne’s

transparency and performance.”

challenges still remained in its rail

services to customers within

of the operations on nearby

charter to deliver a vibrant, sus-

and road linehaul business due to

new Zealand and distribution of

communities.

tainable Port-city vision,” he said.

depressed volumes.

fuel to fishing, farming and retail

Planning minister matthew guy

“during construction and

said the expansion would set new

eventual operation of the new

environmental benchmarks.

port facilities new benchmarks

the decision means melbourne will gain a third container terminal and new operational facilities, expected to be operation in 2016. the port is expected to provide

managing director greg stevenson said he was pleased to see improved figures from the

customers within the south east of south australia.

K&s did not provide an

“we have ensured that quality

for environmental standards

1,100 direct jobs and 1,900

2012 financial year had carried

earnings guidance for the second

landscape and vegetation buffers

and accountability will be set

indirect jobs.

into the half of this year.

half of the financial year.

4 | Logistics&MaterialsHandling April 2013

logisticsmagazine.com.au

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LMH.APR13.PG006.pdf

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training

Refocusing Supply Chain Education Supply Chain School, a division of the Logistics Bureau Group kicked off in Sydney last month with a group of 30 students signing up for the two-day intensive course.

T

he school, based in Parramatta, is being offered as part of the Logistics Association of Australia’s ‘suite’ of training related services.

Group managing director of Logistics Bureau Group Rob O’Byrne said the school was aimed at people looking for a more practical way to learn about the supply chain management industry.

“I think there was a very clear need whereby people that are in the very early part of their supply chain career could actually connect with those who are headed towards “It’s not meant to be timethe end of their career so that there intensive, the whole program is can be a knowledge transfer that really focused on how we can get takes place, “ he told Logistics and the maximum effective information Materials Handling. across in the minimum amount of “It’s really come about from time,” he explained. working with so many people busiO’Byrne said the school would nesses in a consulting role over the focus on subjects that could make years and what I find is that while a difference to how businesses many may have formal education in manage their supply chains, with supply chain and logistics they lack an 80/20 approach to knowledge a lot of practical experience.” building.

The school itself consists of Different from other training three two-day schools a year and is courses, the school will not try to supplemented by weekly e-classes cover everything from A-Z in supply as well as videos and webinars that chain management, but rather focus continue for 12 months. on the critical elements that can O’Byrne said the focus was on make a different to an individuals A D _ L MH D E X 3 A P R _ 1 3 . p d f Pa ge 3 4 / 0 3 / 1 3 , ensuring the education process was career and business.“We’re focusing thorough but not too time-intensive. on the more advanced subjects

that can really make a difference to businesses and people’s performance,” he explained.

“In our first school next week we are looking at how to refocus a supply chain strategy so that it delivers results, we are looking at procurement and we are looking at outsourcing.”

“It’s one thing to understand the theory, but then it’s ‘how do I actually apply that theory’? How do I get traction in my business to make improvements?”

With a relaxed learning environment that encourages the sharing of ideas and knowledge, O’Byrne said the school was 4 : 5 7 PM attracting students who are ‘bright, well-educated….ambitious and

at the early start of their careers.

“It’s about industry leaders and practitioners sharing their knowledge and secrets. Not just me and some of my Logistics Bureau specialists, but well known industry leaders who are making big changes in their businesses right now. External speakers are not invited because of who they are or the title they have, but because of their valuable knowledge and their passion to share that knowledge with the future leaders of our industry.”

While O’Byrne did concede that there had been a lot of popularity for the course among those working directly in the industry, he said many people would benefit from the teachings provided.

“We might get people from sales and marketing, finance, property management or IT,” he told LMH. “The ideal target is probably someone in the early part of their career, someone who doesn’t have a great deal of supply chain experience, or indeed maybe people who aren’t working directly in a supply chain role.”

The programme is provided as part of the services offered by the LAA to their members who will be offered a discount to the school.

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LMH.APR13.PG008.pdf

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trends&developments

Truck crashes on the rise While truck crashes are decreasing in NSW, a new report has found an alarming surge of heavy vehicle accidents in both Queensland and Western Australia.

T

he report examined every heavy vehicle accident in Australia in 2011 and was researched by the National Truck Accident Research Centre (NTARC) - a body wholly funded by National Transport Insurance.

Director of research Owen Driscoll said the Bruce Highway is now one of the most dangerous roads in the country.

Locals blame the poor state of the highway for the jump in accidents.

“It’s been neglected for a very long time and it’s not an all-weather highway,” Liz Schmidt, secretary of the Livestock and Rural Transport Association said.

“I would think in the most recent two wet seasons, we probably lost six or eight weeks with the trucks sitting on the side of the road.

Five trucks, five days at a time, or three or four days at a time. And then there’ll be a huge event and there’ll be a bridge washed out,” she said.

The NTARC report goes beyond pinning the accidents to poor road conditions and names driver fatigue as another factor.

Driscoll believes many drivers are fatigued when they start a shift not just at the end of one.

“Seventy per cent of incidents are happening on outbound journeys and, in cases where they’re on an outbound journey, within the first 250 kilometres,” he said.

The research incorporated the analysis of driver’s log books in order to assess if ‘overwork’ affected fatigue and crashes.

A D _ L MH D E X 5 A P R _ 1 3 . p d f Pa g Driscoll soon discovered factors outside of work were a major contributing issue.

Drivers clocking on after a weekend break were often just as tired as those coming of a week on the road.

“They haven’t worked since Friday or Friday night, but they’re tired,” he said. “How do you identify that?”

The research has prompted the National Transport Insurance to educate both businesses and fleets about the importance of driver fitness checks and responsible rostering.

“We can sit in an office and if we are not feeling all that great on a Monday, because we have had a fairly busy weekend, we can still go to work,” Driscoll said.

“These guys have got to manage even their time off so when they’re back in their truck on Sunday night or the early hours of Monday they’re fit and ready to go.”

One point of concern for the Road Accident Action Group (RAAG) is the lack of adequate rest areas along the stretch of the Bruce.

RAAG is a community organisation which aims e 5 4 / 0 3 / 1 3 , 4 : 5 7 PM to improve the safety of the highway.

“There are no heavy vehicle rest areas in

possibly 120 kilometres of here and there’s only one new one that’s been opened between Mackay and Rockhampton,” Graeme Ransley, road safety coordinator for RAAG said.

“So, that’s 320 kilometres with only one heavy vehicle rest area and that’s dangerous ... it’s recognised in guidelines that there should be a heavy vehicle rest area every 80 kilometres,” Ransley explained.

The research shows that major mining states Queensland and Western Australia have experienced an increase in heavy vehicle accidents.“These are the states that are expanding through mining,” Driscoll said.

“So we’re getting more traffic going to new locations on the worst part of the network. The other aspect of that too is that heavy vehicle drivers, many of them, haven’t been into those particular locations before.

“It’s off their normal route. So effectively, as you follow the expansion of the mining industry throughout Queensland and Western Australia, we’re finding there are more incidents.”

Federal Transport Minister Anthony Albanese said the Bruce Highway had suffered from underinvestment.

He said $3.3 billion has been invested into the road since Labor came into office, with 90 kilometres of duplications currently under construction.

Albanese added that in the previous budget there was almost $200 million allocated for 50 new overtaking lanes, tackling 122 dangerous black spots, and 24 new rest areas.

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8 | Logistics&MaterialsHandling April 2013

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LMH.APR13.PG010.pdf

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factorymaterialshandling

New products, innovations and world-class machinery on show What to expect at AUSPACK plus 2013 This year’s AUSPACK PLUS will highlight the latest

The PFM ZC1 integrated multi-head

developments in packaging and processing materials.

weigher and bagging machine is designed

tna, Emrich Packaging Machinery and Swiss Pack are just

for mid-speed duties up to 80 bags per

three of the companies who will be exhibiting at AUSPACK

minute and targets products such as

PLUS 2013 in May at the Sydney Showground.

snacks, confectionery, pet-food, granular

According to Luigi di Palma, general manager of tna

products, biscuits, pasta, etc.

Australia: “As an Australian company, we are always

The ZCI meets the need for an

delighted to demonstrate our packaging solutions at

inexpensive system that nevertheless offers a

details of the equipment set to take

AUSPACK PLUS, and this year is no exception.

high degree of flexibility, accuracy and is simple to use.

the limelight at their respective stands.

“tna will be exhibiting the new tna robagFX 3ci high speed

The absence of a gantry reduces cost and machine

Privately owned local company

vertical form fill and seal packaging machine, which provides

footprint compared with conventional systems while the

Esko Australia, meanwhile, plans to

up to a 30 per cent improvement in performance in both

compact nature of the unit also allows elevators and

showcase a large range of equipment suitable as part of

output and reduction in rejects and achieves unprecedented

other support equipment to be downsized for further

a processing, filling, retorting, packaging, palletising/de-

throughput rates of up to 150bpm.

savings in capital.

palletising or packing line for PET or glass bottles and jars,

“Visitors will also experience our seasoning system, the

Following a very successful AUSPACK PLUS in 2011

pouches, trays and cans.

tna intelli-flavOMS 3c. A complete, one-piece solution for

Swiss Pack will also be heading to Sydney to showcase their

both wet and dry seasoning and flavouring, the tna intelli-

new product line of machines. In the past Swiss Pack had

state-of-the-art products including the launch of its PA SL4

flavOMS 3c delivers exceptional performance and provides

been concentrating only on packaging materials; however

Eclipse range of tray sealing machines, the launch of APS

even coverage at throughput rates of 100 – 500 kg per hour

they have now branched out into packaging machines.

FAS for high speed bagging and the launch of the Safeline

for a wide variety of applications.

According to Brendan Yee, general manager - flexible

“Technical experts will also be on-stand to demonstrate our tna rofloHM 3 horizontal motion conveyor, which

division, Swiss Pack are now able to design, install and

X3310 x-ray machine.

It will also be exhibiting a new concept for economical

service various packaging machinery.

smoothly distributes goods to minimise losses and

MPI Australia, for its part, will be exhibiting newly released

bagging of consumable and industrial products and

“Our packaging machines are suitable for all solids, liquids

protective packaging from its Autobag range of equipment,

breakages. We will also be showcasing our controls and

and powders - such as: VFFS, Mini pouch packing machines,

as well as the Automac tray stretch wrapping machine, the

integration expertise, demonstrating how our electrical and

coffee packing machines, flow wrappers, shrink tunnels, rotary

Shrinkmaster L bar sealer and shrink tunnel and Cryovac

control system integration solutions can help manufacturers

pouch packing machines, and carton packaging solutions.”

Polyolefin shrink film.

achieve optimum performance in their production lines by reducing inefficiencies and maximising output.”

The Swiss Pack range of materials is extensive and

Visitors can expect to see over 1100 brands and 270

covers both flexible and rigid packaging types such as: pre-

exhibitors, including 68 internationals, all under one roof.

Emrich Packaging Machinery will be exhibiting a wide

formed pouches, flat bottom box pouches, printed rewind,

AUSPACK PLUS 2013 is a ‘must-attend’ exhibition on the

range of equipment on their stand including the PFM ZC1

shrink sleeves, woven PP bags, printed cardboard boxes,

Australian Packaging and Processing calendar and will be

integrated multi-head weigher and bagging machine and the

buckets and pails and custom moulding jars and containers.

held at the Sydney Showground, Sydney Olympic Park from

A D _ L MH D E X 4 A P R _ 1 3 . p d f

Adco 15D105 horizontal hand load cartoner.

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MPI Australia and Esko Australia also have announced

Tuesday the 7th to Friday the 10th of May 2013.

TODAY’S DEXION OUR IMPACT RESISTANT BEAMS OUT-PERFORM AT EVERY LEVEL. ®

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10 | Logistics&MaterialsHandling April 2013

For more information about Dexion and Speedlock visit racking.dexion.com.au

logisticsmagazine.com.au

LMH.APR13.PG011.pdf

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factorymaterialshandling

Keeping dangerous goods safe The storage of dangerous goods are subject to special regulations regarding safety measurements and careful handling.

G

oods are considered dangerous when they are corrosive, flammable, toxic, oxidising or water reactive, and are potentially hazardous to people, property and the environment.

Dangerous goods and handling regulations apply to any company who manufactures, imports, supplies, stores or handles them.

The Dangerous Goods Code sets out the technical requirements for the storage of dangerous goods and penalties for breaching the legislation and the code can be severe ranging from $500 to $15,000.

AMany D _ Loffences M H H Acan KA R_ 1 3 . p d bePenforced

$100 for individuals to $3,000 for for the bulk storage of oils, fuels companies. and chemicals. The range caters The Australasian Institute of for the storage of one pallet or IBC Dangerous Goods Consultants through to 32 pallets.

(AIDGC) say that most workplaces STOREMASTA construct the use and store a variety of dangerous stores for the storage and containgood, and that businesses must ment of all dangerous goods classes, make themselves aware of their and can manufacture to meet any responsibilities. specific requirements including full Fully compliant with the relevant stainless steel versions for harsh Australian Standards, the self and offshore environments. contained STOREMASTA Outdoor With little site preparation Relocatable Dangerous Goods required, and no submissions to stores, cater for the storage of local planning authorities, the pallets and 1000 litre intermediate Relocatable Dangerous Good bulk containers. stores provide an attractive and Constructed in Australia by economical alternative to fixed Priority Group using locally constructions. f P a gmaterials, e 1 4 the / 0company 3 / 1 3 , 5 : With 2 2 the PM produced increasing demand for

by an on the spot fine ranging from

has a range of products available

occupational health and safety,

compliance and environmental protection the correct and safe storage of hydrocarbons and chemicals is imperative.

The company said the Outdoor Relocatable Dangerous Goods Stores are recognised by many manufacturing, mining, processing and off shore industries as the most effective and versatile means of compliant storage solution.

Other gains are also experienced through increased storage efficiency, product accessibility, security and waste elimination.

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April 2013 Logistics&MaterialsHandling | 11

D on速, Dexi 速 Speedlock速 and Ke eyylock速 are eyl a all regi r sster re ste te ed trade a marks mark ks off De Dex D exion e n (Aus ( (Au tralia) ia) Pty P Limi Lim ted. ed FS F A/DE A/D X075 57

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TODAY’S DEXION ENSURES FULL COMPLIANCE WITH THE NEW AS4084:2012 STANDARD.

The new AS4084:2012 requires racking manufacturers to determine the material properties of their components by conducting independent testing. Within a six month period, the University of Technology, Sydney has conducted over one thousand tests on all Dexion’s racking components.

The thoroughness of this testing ensures both our Keylock and new Speedlock racking systems perform to their stated loads. Even more importantly, they meet the world’s most demanding racking codes.

Can your racking manufacturer provide you with the same assurance?

For more information about new Speedlock, Keylock or the requirements of the new AS4084:2012, visit racking.dexion.com.au

LMH.APR13.PG014.pdf

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factorymaterialshandling

Delivering cost-efficient storage and sequencing DesigneD to supply sequenced products for order fulfilment, pick face replenishment or mixed case palletising, Dematic’s new Multishuttle 2 can be utilised in a wide range of applications from short-term buffer storage to production support. instead of the cranes typically used in automated storage and retrieval systems (AsRs), Multishuttle systems use a fleet of self-propelled carts to retrieve and put goods away in an ultra spaceefficient storage system, at very high speeds. Lifts at the end of each A Dtransfer _ L M Hgoods A D Ain A and P R out _ 1 of 3 the . pd aisle

in a significant upgrade, Dematic’s second generation Multishuttle 2 incorporates advanced engineering, lightweight aluminium construction and a new load extractor for faster operating speeds, higher payload capacity and multi-deep storage capability.

system via integrated conveyors.

width of the load to be handled,

14 | Logistics&MaterialsHandling April 2013

Next generation technology The all-new design standard, Flex and Belted Multishuttles enable the system to be tailored to meet each user’s unique product handling requirements.

With telescopic arms that f P a g e adjust 1 4 /to0the 3 / 1 3 , automatically

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Multishuttle 2’s Flex option enables the rapid retrieval of variable load sizes and types of packaging, without the use of trays.

The eight-finger design of the load extractor and overlapping telescopic arms enables Multishuttle 2 carts to store products single, double, or multideep. Load capture fingers are carbon fibre reinforced for robust long-term performance.

The new load extractor design also minimises space between products, maximising storage density, and can be configured to handle loads up to 50 kg in a range

logisticsmagazine.com.au

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LMH.APR13.PG016.pdf

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factorymaterialshandling

of widths from 150-650 mm, lengths from 200-875 mm, and from 50-600 mm high.

changing needs of customers.

Lifts can connect work stations “Dematic’s solutions for above and below to ensure multi-channel distribution maximum density and use of operations are centred space.

Flexible and scalable around modules that scale to Ms Flex option speaking at the recent changing operational needs accommodates various load exhibition in Chicago, UsA, and growth, and have peak sizes while work platforms in Mike Khodl, Dematic’s capacity flexibility built in aisles provide manual access to vice president, solution to accommodate seasonal, inventory and for servicing development, said the new promotional and weekly order identical interchangeable system provides important volumes,” he explained. carriers which enable fast changes for the industry.

Dematic Multishuttle 2 replacement are also a “Multi-channel distribution features increased throughput, feature, as are the additional is driving important changes in a smaller footprint, more Multishuttles that can be our industry today. layout options and is energy added at any stage to further “Retailers want to fill orders efficient. increase throughput. for large and small store Multishuttle systems can With 60 systems formats and e-commerce from be implemented virtually incorporating nearly 4000 a single inventory cube. To do anywhere including wasted Multishuttles throughout that, they need to transition airspace and under or over europe, north America, Asia from batch-based to dynamic, obstructions, optimising the and Australia, Dematic’s on-demand workflows because use of valuable warehouse Multishuttle® has changed the they no longer know what their space and high storage density storage, handling, buffering, workload will look like ahead supports multi-depth storage staging and sequencing of of time,” he said. and handling of units of totes, cases and trays in AKhodl D _ Ladded M H Bthat A C the S E P _ 1 2 . different pdf Psizes a ge 1 packed, 3 0 / 0 7 / high 1 2 volume , 1 1 order : 1 3fulfilment AM tightly machines were developed to the without fixed storage locations. operations.

16 | Logistics&MaterialsHandling April 2013

logisticsmagazine.com.au

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THE NEW WB 34 SERIES. A GIANT LEAP IN PERFORMANCE AND COMFORT. The WB 34 Series is one of the lightest work boots we’ve ever made. But it isn’t light on features. It’s packed with innovations like the NATUREform® steel safety toecap, advanced heat, acid and split-resistant sole, the unique COMFORTcushion® impact absorption system and the new breathable Aegis† antibacterial technology embedded in the lining and the footbed. So, wherever your work takes you, you’ll find it’s the ultimate blend of safety and comfort. Discover more at your nearest retailer or at oliver.com.au

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LMH.APR13.PG018.pdf

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factorymaterialshandling

Synchronised crane drives MODULAR Cranes Pty Ltd, a Melbourne-based crane manufacturer, were presented with an unusual problem to solve for one of their customers. Modular’s customer, a heavy truck trailer manufacturer, already had two 22-metre-wide overhead cranes installed in their factory which ran on the same set of rails. Each of the cranes was rated at 12.5 tonnes and had given reliable service for many years. They were identical in their specification, and were synchronised with both their slow and fast speeds, as well as the elapsed distance they travelled to slow down and stop. The customer’s new production process now required that a third crane was included on the same set of rails to move very long, heavy trailers along the factory, with the load shared between two of the cranes at any one time. The cranes would be actuated simultaneously, as required, using a wireless handheld remote control.

Modular Cranes sought the expertise of NORD Drivesystems, the German Helical geared motor and frequency inverter manufacturer, for the two travel drive Helical geared brake motors on the new crane. To solve the synchronisation problem, NORD Drivesystems’ de-centralised frequency inverter technology was also employed. To further enhance the economy requirement,

NORD Drivesytems proposed a conventional 4 pole electric motor with a 10Nm electromagnetic brake mounted to each of the NORDBloc.1 series inline Helical geared brake motors. The NORD SK205E series de-centralised frequency inverter was also included, complete with internal 24 Volt power supply cartridge, and an external brake resister to accommodate the re-generative current produced by the cranes’ weight when slowing to a stop. The high-precision accuracy of the NORD Helical gear set and the flexibility of the de-centralised frequency inverter software allowed this new crane to be synchronised with the existing cranes, without the requirement of rotary encoders.

Pressing the right buttons The Australian-designed hydraulic press

bed. The hydraulic cylinder mounted on

beginning at the torque converter,

solves the tricky maintenance challenge of

the cross-arm of the frame can also be

through to clutches and differentials all

getting awkwardly shaped heavy vehicle

moved from side-to-side to provide force

the way to the rear wheels.

and conveyor components positioned

precisely where it is needed. The press’

precisely under a press so bearings and

maximum gap (daylight) of 1208mm and

the workshop’s old h-frame press could

wear components can be safely and

width (1222mm) is sufficient for the bulky

not handle the big jobs efficiently.

swiftly removed and replaced. These

items of mobile and static plant.

components would otherwise have to be

With workplace safety a priority, the customer reviewed the enerpac

manhandled in a time-consuming and

labour on major jobs, cost-efficiencies

equipment being used for servicing by

potentially hazardous operation.

to operators and customers as well as

a major resources site where it was

achieving safe working practices.

employed on one of the largest types

Available in 50-200 ton capacities, the enerpac 700 bar roll-frame

According to enerpac regional

of dumpsters in the Cat range,

press can be used to service bulky

manager Australia and New Zealand,

components from tractors, trucks,

Tony Brooks, the presses have been

bulldozers, dumpsters, earthmovers

installed in some of the major heavy

meet the specific requirements of the

and static and mobile materials handling

vehicle servicing facilities serving

customer. The enerpac cylinders at

equipment. Operators of the IPR

industries such as mining, oil and gas,

the heart of the press are the globally

series roll-frame presses simply place

civil engineering, heavy transport and

proven R series, which are used by

workpieces on the press bed, roll the

public workshops.

major industries and renowned for

press’ mobile frame into position above

One recent refitting workshop

them and lock it in place in the ideal

application used the enerpac equipment

position for work to commence.

to precisely and powerfully press an

Moving smoothly on bearings, the

18 | Logistics&MaterialsHandling April 2013

Benefits include saving days of

Before introducing the enerpac press,

the 790 series. enerpac fabricated a press to

their reliability and backup through a nationwide service organisation.

The precision press helps users

extensive range of worn bearings out

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costs through shorter downtime,

workpiece is loaded onto the press

workshop handles all drive components,

Brooks said.

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LMH.APR13.PG020.pdf

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inventory

STABLE solutions Rough terrain telehandlers are providing miners with more options on site.

D

emand is growing on mines for safe, quick material handling solutions.

Whether it is bulk goods movement or single bit of equipment or machinery it has to be moved safely on a site which is usually a hive of activity.

Added to this is the issue of terrain.

Mining operations aren’t known for being the most level of work spaces.

Because of this stability and manoeuvrability are essential when working in rough and tough areas of mine sites.

Recognised as the inventor of the rough terrain machinery, Manitou manufacture a comprehensive range of materials handling and lifting equipment that ensure operations remain safe, reliable and economical.

And at the upcoming Bauma exhibition in Munich later this year, the company will be highlighting its latest offerings and new developments in lower emission materials handling.

Rough terrain masted forklifts Working on natural, rough or ungraded road surfaces may not be suitable for ordinary forklifts, posing a possible danger to forklift operators.

Its telescopic units are multipurpose with a range of quickhitch attachments, including forks, buckets, muck grabs, tyre handlers, personal cages and jibs/winches.

Designed from the ground up, operator safety, comfort and 20 | Logistics&MaterialsHandling April 2013

easy maintenance were all issues considered during development.

This means the new M30 and M50 range of rough terrain forklifts are available in many configurations to ensure companies are operating with the correct machine.

In line with the latest European emissions standards both vehicles feature an IIIB - Tier IV engine.

Both designed specifically for handling loads on rough terrain the M30 has a lift capacity of 300 kg and a travel speed of 28 km/h while the M50 boasts a lift capacity of 5000 kg, has a travel speed of 25 km/h and a lift height of 3.70 metres.

Rotative telescopic handlers Telehandlers are becoming more popular on mine sites due to their flexibility and usefulness and are perfect for use in limited access areas or applications.

The machine’s versatility means it can be used at every stage of the construction timeline and allows users to perform multiple applications with one machine due to the many attachments that can be added.

With a wide range of attachments available, and featuring a 360 degree rotation, the MRT is a great choice for structural work, industrial maintenance and other jobs around any construction site.

They feature attachment recognition technology, and importantly, automatic stability calculation.

This adaptive load chart feature allows users to intuitively calculate and program the correct working space for the machine, taking into

account the stabiliser position and turret angle, as well as any work space restrictions such as height issues or obstructions to the front and side.

The telehandlers also feature improved operator visibility, which was achieved by modifying the roof grid design from a horizontal to a vertical pattern.

One of the major improvements for the vehicle is the Eco-mode during road operation.

This transfers power from the unused parts of the machine such as the boom hydraulics to the wheels and steering, minimising wasted energy during driving; with Manitou adding that “all of your power goes to driving”.

The MRT Series telehandler offers rotation and 3-in-1 versatility for multiple applications, and can be equipped with a winch or jib for crane applications, fitted with forks for a handling operations, or fitted with a platform to become an aerial work platform.

The rotating telehandlers will lift loads, or personnel, to heights from 14 to 30 metres.

Loads from 8,000 to 10,000 pounds are easily handled by the versatile machines.

Further expansion Manitou is also refocusing on expanding its middle lift range, adding three new models with lifts ranging from eight to 14 metres.

These machines will also feature the Tier IV engines.

It will also bring out the new Gehl and Mustang skid loaders, known as the V400 and 4000V respectively.

These are expected to hit Australian shores in the second quarter of this year, and “are the world’s most powerful skidsteers, with more than 1.8 tonnes of operating capacity”.

The machines have a breakout force of 4150 kilograms and a vertical lift height of 3.65 metres, all powered by a 74kW engine. logisticsmagazine.com.au

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safetyequipment

Warehouse & Distribution Guide to Workplace Safety Partnering with the Supply Chain & Logistics association of australia and national Safety Council of australia, Pro- Visual Publishing has released the 2013 edition of the Supply Chain / Warehouse & Distribution guide to Safety. after consulting industry experts, this year’s Supply Chain / Warehouse & Distribution guide to Safety touches on the most relevant safety issues within the industry. the guide explores topics such as manual handling, onsite health and wellbeing, pallet racking audits and risk assessment, storage of dangerous goods and hazard communication when working alone. the valuable guides are distributed at no cost to wholesale, warehouse, supply chain and distribution companies, logistics service providers, stevedores and weighbridges as well as major manufacturers of goods throughout australia.

Manual handling was the biggest cause of workplace injury in Victoria last year with more than 10,000 people injured as a result of unsafe manual handling.

“Musculoskeletal injuries are the most common workplace injury, costing nearly $1 billion a year in medical costs, wages and other expenses,”Victorian assistant treasurer, gordon rich-Phillips said last year. “they affect the body’s muscles, joints, tendons, ligaments and nerves, are easily prevented, often difficult to

safe, as well as specific duties in relation to hazards such as

information to make their workplaces safer and ultimately

treat and can be long-lasting and a source of great pain.

manual handling. they must identify any tasks that involve

help save lives. i would like to thank all of the sponsors

hazardous manual handling. if these tasks pose a risk of

for their support of the Supply Chain / Warehouse &

musculoskeletal disorder, you must eliminate the risk.

Distribution guide to Workplace Safety, who have made

“it is through this guide that Pro-Visual Publishing

it possible for it to be distributed at no cost to recipients

hopes to ensure that managers within the Warehouse

throughout australia”, said John Hutchings, CeO of Pro-

& Distribution sector are provided with high quality

Visual Publishing.

rich-Phillips stated that every day 43 Victorians are seriously hurt with these sorts of injuries, with an average workers’ compensation claim costing $55,000 medical costs, wages and other expenses.

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April 2013 Logistics&MaterialsHandling | 21

LMH.APR13.PG022.pdf

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bulkhandling

Policing TML in the Pilbara Moisture analysers are taking the danger out of wet iron ore shipping.

E

xacerbated by the can then be made to select or wet season, TML combine suitable stockpiles to (Transportable Moisture comply with TML requirements.

Limit) is now a crucial Extensive and successful concern for major producers. repeatability and reliability trials Delays to loading and also of the MoistTech CCS-3000 with unloading non-compliant ore or major producers in the Pilbara customers rejecting product, costs have set the CCS-3000 apart millions of dollars. as the technology of choice to The MoistTech CCS-3000 measure free moisture accurately, Moisture Analyser “polices” TML consistently and in real-time. in real-time as iron ore fines is Recent fatalities from oceanA D _ L MH E R I F E B _ 1 2 . p d f Pa ge 1 6 / 0 1 / 1 2 , conveyed on a belt. Interventions going bulk carriers capsizing

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due to liquefying iron ore fines, have focused the attention of the International Maritime Organisation (IMO) on its classification. A two-year, $2m research project into the liquefying phenomenon is being completed by the Australian Mineral Industry Research Association to be completed in May 2014 for submission to the IMO. In the meantime, the MoistTech CCS-3000 Moisture Analyser “polices” TML effectively, efficiently and economically.

Money and time are saved by determining the instantaneous 22 | Logistics&MaterialsHandling April 2013

percentage moisture content of the ore. Moisture content can be viewed in real-time, alarms can be automatically raised and monitoring can be conducted via smart phone. The MoistTech CCS-3000 Moisture Analyser from J.W instrument employs a non-hazardous technology, emitting rapid energy pulses 7,000 times per second from a specifically designed energy source onto the iron ore fines using forward optical reflection and collimated energy techniques, to succeeded in accurately measuring moisture to “police” TML effectively. logisticsmagazine.com.au

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bulkhandling

Cutting carbon New schemes are set to aid miners in reducing their trucks’ carbon footprints.

T

rucks hauling overburden and ore are one of the largest carbon emitters on site, increasing the pain of the carbon tax.

More efficient engines and operation is cutting the carbon costs.

As the carbon tax continues to bite miners’ bottom line, resources companies have to think about the most efficient way to operate.

They also have to think about their highest carbon emitting operations - mainly haul trucks traversing the site.

In addition to this many other mining companies wear the cost of additional freight by truck for sites reachable only by road.

Bulk Mine Services is the first brand new company to be certified as carbon-neutral, and is aiming to transform the way the mining industry thinks about carbon emissions.

Bulk Mine Services principal Steve Fieldus said his company wanted to lean by example and start the business on the right foot.

“What we wanted to do with Bulk Mine Services, was to be on the front foot and carbon-neutral from day one,” Fieldus said.

Fieldus said the Dubbo-based transport and logistics company would begin its operations with one truck, but hoped to expand to meet the demand for the transportation of any mining-related bulk products as well as general freight.

“We’ll find logistical solutions for products that need to be moved into and out of mining centres and by offering our services to mining related industries we’ll be getting the carbon-neutral message into their psyche by showing them a sustainable way forward.”

24 | Logistics&MaterialsHandling April 2013

Low Carbon Australia CEO Meg McDonald said it made sense to create a business plan with projections for baseline activities and carbon emissions.

“It makes good business sense to operate as efficiently as possible, and adopting carbon-neutral thinking means you can encourage a staff culture of thoughtful energy and resource use while choosing low-emissions technology to keep operating costs down,” she said.

The National Carbon Offset Standard (NCOS) provides companies with certifications that their organisation, event, service or product has met strict Australian standards for carbon neutrality.

Low Carbon Australia Limited is the Australian Government’s official certifier of carbon neutrality, providing financial solutions and advice to businesses on how to boost investment in energy efficiency.

Bulk Mine Services has committed to trialling low sulphur diesel and biodiesel fuels in its trucks, as well as a driver incentive program which rewards drivers for lower fuel consumption.

The company will also decommission older trucks to reduce the likelihood of higher emissions for less carbon efficient engines. Waste oil and tyres are also recycled, further reducing emission outputs.

The company plans to meet its electricity needs through GreenPower and will purchase and retire offsets to bring its total emissions to zero.

Fieldus said the company’s Dubbo location meant they were ideally located to be a mining industry services hub in New South Wales’ central west.

“While we’re based in Dubbo, Bulk Mine Services would be happy to look at any transport or logistical

requirements in all Australian regions,” he added.

Fieldus is also principal of the Dubbo-based Transforce Bulk Haulage which last year became the nation’s first heavy transporter to be certified as carbon neutral, demonstrating how trucking could be a more sustainable industry.

McDonald has welcomed the move made by both companies to take up the challenge of becoming carbon-neutral.

“Steve has been a wonderful ambassador for our Carbon Neutral Program to date and it’s fantastic that he’s ensuring his new transport business travels the same road,” she said.

“Last year, our Carbon Neutral Network members collectively avoided more than 1 million tonnes of carbon emissions.

“Through their commitment they’re set to increase that amount this year.” logisticsmagazine.com.au

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bulkhandling

From port to pit As fuel costs rise and Australia’s aging and inadequate infrastructure puts pressure on the nation’s logistics and supply chains, transport companies are having to think smarter.

T

ransport via road does open up choices but the high cost of diesel fuel bites into the bottom line.

Rail is hampered in Australia by the tyranny of distance and inadequate infrastructure which mean major areas of the nation can’t be reached.

Oceanic shipping is more cost effective, but areas not serviced by ports are also at a disadvantage, whereas air freight alone discounts most of Australia as outside of major cities there just is not the infrastructure required.

Simply put, if a logistics company is not prepared for the rigours of the Australian transport sector, they are at a disadvantage from the start.

So how can a supply chain be set up to overcome these issues?

One of the major ways around this is to pre-plan.

Speaking to international shipping, transport, and freight forwarding company Rohlig, and its new Australian managing director Hany Amer, he told Logistics & Materials Handling Magazine that for bulk materials transporters the current market can be a difficult if they are not prepared to think ahead.

Working within Australia presents a whole set of new problems compared to working internationally.

Particularly from the demanding resources sector.

Due to the remoteness of many operations transport and supply chain companies have to think differently if they want to successful move the massive machinery to site in a reasonable time.

While much of the equipment is logisticsmagazine.com.au

assembled on site, it still requires serious logistical know how to get it there in the first place, moving it from port to site.

If a freight forwarding company is only looking at one avenue of transport they could find themselves coming up short.

“We have three core areas airfreight, sea freight, and project logistic,” he said.

“As we cover these areas it allows us to look at alternative modes of transportation for different projects which best aligns to the operator’s needs, such as using costal freight between ports rather than trucking it from down the coast,” he told Logistics & Materials Handling Magazine.

He explained that pre-planning is the major aspect of properly transporting and creating a supply chain in this current economic environment.

“Through the use of different supply chain systems users can now pre-plan their purchases and delivery processes well ahead of time which better allows us to plan the supply chain method.

“For instance, by using ‘air wave’, a combination of both air and sea, it can be taken into, say, Hong Kong - a major transport hub, by airfreight, then into Australia via seafreight, which can save an end user up to 40 per cent of the costs compared to solely using air freight,” Amer said.

“Combination transportation and planning this into a schedule is the future, as rising costs mean we all have to be more flexible in the scope of what is provided.

“Luckily as a smaller company, compared to the other global trans-

portation companies, we’re able to be more nimble in our approach, as we’re more mindful of cost we have to take a more flexible and integrated approach in the solution.”

The way forward is to fix the infrastructure problem, but transport companies can not rely on the Government alone to solve the problem.

“It must be a combined effort; although the government plays a key role private enterprise needs to be involved,” Amer said.

“Rising costs and geographic distances are the key issues.

“Operators are in the field so we have a finger on the pulse,

know where the bottlenecks exist - it needs to be a collaborative approach. There needs to be more private public partnerships, as a lot more infrastructure investment needs to take place.”

Amer’s key message is that “we’re investing in the supply chain even though it is a volatile climate,; we’re investing by increasing our resources on the ground, using our global expertise locally, and using high tech system with purchase and planning”.

For logistics and material handling companies “it’s about being flexible and looking forward,” he added.

April 2013 Logistics&MaterialsHandling | 25

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bulkhandling

Maintaining mature crane stock Keeping cranes hoisting is key to ensuring increased productivity

K

onecranes is meeting the challenges of a salt air environment and a hardworking mature crane stock in fulfilling a maintenance agreement for cranes employed by Xstrata at Abbot Point Bulk Coal Terminal One near Bowen in Queensland.

The work provided by Konecranes includes quarterly inspections, remedial work and certifications on 27 overhead cranes of a number of makes and types at the terminal. The terminal is operated by Abbot Point BulkCoal, a subsidiary of Xstrata. Terminal One was recently expanded to a capacity of 50 million tonnes a year.

“It’s a tribute to the trust enjoyed by Konecranes among our customers, both new and established, that we were able to secure this work,” said Geoff Malone, Townsville and Mount Isa service manager for Konecranes.

The cranes being serviced at Abbot Point include shiploaders, transfer conveyors and other bulk handling equipment employed on loading coal produced by Xstrata, which is one of the world’s largest mining and metals companies, operating in more than 20 countries.

Duncan Robertson, maintenance planner for Xstrata Abbot Point, said: “Every three months, Konecranes inspect our cranes and give us a defect report. We then organise repair of the defects, which can take up to a week with the Konecranes maintenance crew on site.”

Abbot Point is two hours’ drive from Townsville, so Konecranes technicians base themselves in nearby Bowen while completing the work.

“They’ll also come out quickly from Townsville if we have any breakdowns,” Robertson said.

“There are particular maintenance challenges in our location, which is on the ocean. The salty air can corrode the machinery. Also, most of our cranes have been in place for 20 plus years, so we can realistically expect more maintenance to be required.”

He said that Konecranes was able to supply service parts for a variety of crane types and brands and knew how to work on them.

26 | Logistics&MaterialsHandling April 2013

“We would recommend Konecranes to other companies like ours needing crane inspections and maintenance.”

Konecranes highly trained technicians and inspectors have the knowledge and tools available to take care of all crane needs, allowing companies to concentrate on time, manpower and production.

Konecranes maintenance services include compliance, preventive maintenance programs, predictive maintenance programs, reliabilitybased maintenance and full maintenance agreements.

Konecranes can customise compliance programs for lifting equipment to monitor, repair or replace items in accordance with local regulations and laws.

By scheduling routine repairs, maintenance work and inspections, Konecranes can help to not only prevent equipment safety issues, breakdowns and compliance violations, but prevent component failure. A primary aim is to prevent unnecessary production downtime saving resource companies like Xstrata time and money.

After scheduling routine repairs and inspections to ensure compliance and preventively maintain equipment, Konecranes analyses and prioritises current and future repair needs. By predicting these needs,

companies can reduce unexpected repairs, emergency repair costs and unbudgeted equipment purchases. This allow companies to take predictive maintenance to the next level. By using innovative maintenance software systems, Konecranes is also able to track the history of equipment. This lets them establish breakdown and equipment failure patterns and allows for the modification or upgrade of existing components, increasing production uptime and the overall life cycle of the crane.

Whether a company has a ¼ ton hoist or hundreds of cranes, Konecranes can offer full maintenance agreements that allow companies to have a fully managed staff ready to take care of complete crane equipment and maintenance needs. logisticsmagazine.com.au

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Managing the fleet for higher profits Safety, efficiency and improved service levels are all imperative in the management of mobile resources.

M

aking optimised business decisions to reduce carbon footprints, reduce costs, save time and improve asset utilisation are important in all fleet management businesses.

Telogis is an American company that provides a cloud-based location intelligence software platform that has the ability to transform the way businesses optimise their mobile assets and critical data.

The Telogis platform was designed to provide mission-critical and actionable information for companies with mobile workforces.

Telogis’ software platform works for companies that require mobile applications, real time work order management, dynamic routing, navigation and telematics for their mobile work force.

Susan Heystee, executive vice president for worldwide sales, says the Telogis platform allows companies to improve their businesses.

“Where we have differentiated is in providing enterprise telematics and location intelligence, routing and progression to really help companies transform their business,” she told Logistics & Materials Handling Magazine. And with a new push into the oil and gas sector in Australia, Heystee says demand for the software is growing.

“We have several large customers that we are providing the solutions for globally, and Australia is a clear market that they’re pulling us into to deploy these solutions.

“BHP is a large customer of ours in North America and Orica is a large customer for us in Chile.

logisticsmagazine.com.au

“We’re being driven by the demand from our enterprise customer,” she explained.

Telogis for Oil & Gas is a comprehensive cloud-based enterprise software suite targeting companies in the oil and gas sector.

The company says the features of the platform can improve driver safety, fuel efficiency, and also addresses specific reporting requirements for powered and nompowered assets.

The platform monitors a vehicle’s systems and sends instant in-cab alerts for unbuckled seatbelts, aggressive driving, speeding, hardbraking and fast acceleration.

All alerts are assembled into driver safety scorecards and enterprise dashboards so that progress and reporting is made easy.

Alerts can also be sent to managers via SMS or email, making it useful for behaviours that require immediate coaching.

Telogis for Oil and Gas also delivers mobile workforce applications, monitors vehicle idle time, automated off-road mileage, power take off use and total distance driven.

The platform also provides oil and gas companies with the ability to develop and import their existing map layers and track high-value mobile assets to help prevent loss.

“In the area of mining it is supporting additional technologies in geo-spacial, as well as content to be able to bring in all the contents above the mine site and overlay that into the platform so that not only are you looking at clusters of your assets and your vehicles, but it covers many different types of

powered assets,” Heystee told LMH. An example of that is we’re working with companies in the U.S. to bring in all of their well sites. We are able to verify that a well site has been inspected every day and look at how much time is spent at each site.”

Heystee said these features allow greater visibility into the day-today operations of a company’s mobile workforce, with the ultimate goal of reducing costs and improving efficiencies.

“What we do is turn the lights on to those mobile resources and assets by providing visibility on ways to integrate and transform the business,” she said.

“By implementing changes based on what we’re able to measure we can create programs that really drive efficiency, ensure that fuel is optimised, ensure that workers and crews are safe, and integrate those mobile resources much more closely back into the business.

“We work with companies to provide telematics on things like driver safety, and behaviours, and we are able to ensure that vehicles are being routed to a particular job, and that we have the right mix of the fleet to deliver on the jobs being performed.”

Heystee said the new platform will help deliver improvements

for the resource industry and their mobile fleets.

“These companies have millions of dollars in mobile resources that are out performing the work of the business,” she stated.

“We are already deployed with Transfield Services here, so we’ve got quite a few customers already that are large enterprise scale fleets.”

President of Telogis Fleet, Jason Koch, said the features of the platform would enable resource companies to deliver driver excellence.

“With the level of expertise earned through years of work with the oil and gas industry, we felt that it was important for Telogis to focus our efforts on addressing the very specific needs of these companies,” he said.

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WMS Start-Ups The high incidence of delays in warehouse management system start-ups within highly automated DCs can be avoided by realistic planning and careful management. Jeffrey Graves* writes

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A D _ L O G S I MO C T _ 0 9 . p d f

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espite their importance, successful implementation of warehouse management systems (WMS) is seldom fully realised in highly automated distribution centers. This is evident in the many warehouse management systems of new and upgraded distribution centers that are not adequately functional and fully utilised by the DCâ&#x20AC;&#x2122;s staff, in some cases years after they were targeted to be completed. It is also evident in the excessive cost overruns caused

by WMS delays that were not properly planned and executed.

Today, simply selling and installing material handling equipment is not enough. A more holistic perspective is required for starting 1up successfully 9 / 2 2 / 0 9 , 4 : distribution 0 7 PM operating centers. Without a fully functional warehouse

28 | Logistics&MaterialsHandling April 2013

management system (WMS) operating at 100 percent at go-live or shortly thereafter, the greenfield or upgraded DC will fail to perform at expected levels of throughput and efficiency, and the anticipated ROI will be unrealised, or delayed at best.

Warehouse Management System The objective of the WMS is to provide a set of computerised procedures to manage the movement of inventory and orders within the warehouse, and enable a seamless link to order processing, logistics management and material handling equipment (MHE) systems within the facility.These MHE systems handle receiving, put-a-way, storage, picking, packing, labeling, sortation, shipping and returns.External to the warehouse, the WMS links to shipping carriers

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for incoming deliveries and outgoing order delivery confirmation.

Highly automated distribution centers may have many material handling equipment components and sub-systems, each with their own discrete control systems (such as warehouse control systems and programmable logic controllers), which require integration with the warehouse management system into a singlesource point of control.

Additionally, warehouse control systems (WCS), traditionally functioning as middleware real-time interfaces between the WMS and programmable logic controllers (PLCs) that control the material handling equipment are now taking on more functionality and looking more like a WMS, effectively blurring the lines between conventional WCS and WMS applications.

Such WMS functions like managing order activity and batching orders for waving can now be accessed through a WCS allowing distribution executives another option to fine-tune their DCs while optimizing their investment in software.

Depending on the degree of MHE automation in use within the warehouse, an arsenal of automatic identification and data capture (AIDC) technology can be employed, such as barcode scanners, mobile computers, wireless LANs, magnetic stripes, optical character recognition (OCR) and radio-frequency identification (RFID) to efficiently monitor the flow of goods.

These units capture and relay data throughout the distribution system in real-time via wireless transmission to the WMS, which then can make available comprehensive and detailed reports about the status of inventory and orders moving through the warehouse.

Warehouse management systems process huge volumes of data on a split-second, realtime basis with near flawless accuracy, while integrating with ERP, shippers, hundreds of AIDC units, and dozens of MHE systems operating thousands of I/O. Clearly, the WMS is the most central and critical component of a warehouse’s operation.

facilities and equipment, and loss of throughput can be sizable.

So, what is it that hangs up the WMS from going live on time? Quite often, it is not the WMS itself that is causing the hold up, but another software system that is being developed which needs to integrate with the WMS. This could be a web portal for inventory visibility, which is behind schedule, but is slowing up the whole implementation and testing of the WMS. Sometimes it is the integration of the WMS with the company’s host ERP that is causing the trouble. As there are no standard interfaces to ERP systems, there is always customization that needs to be programmed and tested, which can easily be underestimated. It may be that the company’s homegrown ERP has been so neglected that the extensive modifications to the ERP system are taking much more time than expected. Or, possibly the company’s legacy ERP is so tethered to the prior WMS, which is now being replaced, that a new ERP has been slated for installation, and the full WMS install is waiting on the ERP. Interfaces with the WCS for the various material handling automation, and the transfer of information back and forth between the PLCs in the equipment and the WMS, have to

be seamlessly put together before the material handling equipment can be fully operational.

Dashboards need to be built for management team visibility to display KPIs related to productivity. As well, dashboards are needed for customer service that might be integrating with customers to give them updates on their orders, inventory or shipments.

There are many factors that need to be carefully thought through and ensured are seamlessly integrated when building a new WMS platform.

Planning is Key Believe it or not, some WMS installations have gotten so stalled that they were eventually shelved and abandoned. This, of course, is the worst thing that can happen to an install.

For whatever reason – tried to implement too much, or established unrealistic dates, or did not fund an adequate project team – too many things needed to be working right that were just not coming together to make this project go live any time soon.

Not quite so disastrous is the WMS project that goes live, but was not configured correctly, so the repair workload, tracking of problem orders and problem inventory becomes such a burden that the only solution is to add a battery

Risks Affecting WMS Implementation Despite the importance of warehouse management systems, approximately 30 percent of WMS installs fall behind schedule and fail to be ready for operation at go-live. When delayed, WMS installs typically hang-up from three to twelve months before becoming fully operational.By any engineering standard, this statistic is unacceptable. The costs in additional time, personnel, underutilised logisticsmagazine.com.au

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of IT technicians to solve the problems.

Of course, this substantially increases the cost of the project.

Then there are the WMS projects that implemented without too much delay or cost overruns, but for some reason are not delivering the expected capability or benefits.

What adversely affects warehouse management system installs more than any other factor, however, is the expectation that an off-the-shelf WMS product can be put in with minimal modifications. In reality, these projects end up with much more modification to the software than what was anticipated. Usually, inadequate due diligence is the culprit here, on the WMS selection process.

Companies have fixed processes that they have grown up with on their legacy WMS that they do not want to give up. The new WMS they have selected may not support these processes in the way that they were being performed. So, they are either forced to change the process or modify the software to allow them to continue functioning as before.

The more modifications, the more risk for delay and cost overruns, and the more risk for testing and interface issues. Going this route, well over 1,000 software modifications could be expected on some projects. Once software starts to be modified this heavily there is no path to upgrades, so they get stuck with a heavily customized WMS. Five years up the line, when the company is looking at an ‘upgrade’, it is faced with having to get an entirely new WMS. A tough start-up of a WMS does not just happen in the two weeks prior to go-live. These scenarios are caused by inadequate pre-planning from the very beginning, and poor project management.

Following are several critical actions that are usually missing or inadequate in failed WMS projects, which need to be in place to pull off a successful WMS installation: 1) Detailed Definition of WMS Operations – A clear identification of the needs and wants from a WMS as determined from senior-level logistics executives in the company. This encompasses MHE selection and integration, ERP suitability, business projections, inventory allocation and flow strategies, system design criteria, and labor management and transportation management systems. A complete ROI analysis is prepared, comparing current operating procedure to the new, proposed WMS operating structure.

2) Process Determines the WMS – Too many supply chain executives are approaching warehouse management systems from the wrong 30 | Logistics&MaterialsHandling April 2013

newly implemented WMS are not operating at full capacity. Despite its importance, successful WMS change management strategy is seldom fully embraced by those responsible for the WMS installations. Before the WMS goes live, the coordination of equipment testing, system conversion and equipment start-up is critical to ensure the interlinked material handling systems come up without interruptions. Well before the go-live or switchover takes place, it is vitally important for the DC’s staff to be fully trained in the operation of the WMS and the dozens of functions involved with the operation of the facility. This requires considerable coordination between equipment manufacturers and installers, the warehouse executives and operational personnel, and the company’s executive management to ensure targeted actions are completed as specified in the WMS Installation Plan.

way around. They are making the fundamental mistake of selecting a WMS, and expecting to change their processes to fit into it. Where, in fact, identifying a company’s best processes, then finding a WMS that will support these processes, with minimal modifications, should be the initial central approach of any WMS solution. Approaching WMS design from a process perspective does not necessitate the implementation of any specific IT solution, but leaves the door open to any options to achieve the objectives of the distribution center’s supply chain executives.

3) Coordinated WMS Installation Plan – Typically, the WMS is being built while the MHE systems are being installed, and potentially when a new ERP is going in. The precise date coordination of equipment testing, system conversion and equipment start-up with the WMS build is critical to ensure the interlinked material handling systems in the new warehouse, and ERP, come up without interruptions. Usually time underestimated, this plan must allow for potential MHE and ERP delays, as well as potential time delays for unforeseen WMS modifications.

4) WMS Change Management – a critical link in the smooth WMS transition into functionally efficient live operations. It is so vital that inadequate WMS change management can be isolated as a key reason why warehouses with

Leveraging Objectivity Implementing successful WMS strategies can be challenging, even for the most seasoned supply chain executives under the best of conditions. Negotiating with system installers, IT technicians, equipment manufacturers and company executives requires a broad perspective on every aspect of WMS installations, and the know-how to keep the project on track and on schedule. Such management tasks are ideally suited for independent logistics consultants who are uniquely equipped to embrace and coordinate the full functionality of all activities within the scope of the project.

Logistics consultants draw on solutions from many WMS options that are used in different industry applications, thus providing a broad perspective on potential solutions that might otherwise not be considered.

This depth of experience can make the critical difference in selecting and managing implementation of the right WMS that will meet the requirements for throughput and efficiency, minimize capital outlay and deliver the expected return on investment.

Only with the selection of the correct WMS for the application, careful navigation around the installation challenges that so many distribution centers have encountered, and the management capability to keep the WMS project on schedule and budget, will the new WMS go-live on schedule and on budget, and operate at full expected functionality. *Jeffrey Graves has held the position of President of Sedlak Management Consultants since 1989. logisticsmagazine.com.au

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