SUMMER 2000                                                                                                                     Volume 01 / Issue 02

                                                           THE HEART OF THE SUPPLY CHAIN
                                                           In the midst of today’s supply chain and e-commerce
                                                           revolutions, manufacturing is taking center stage, and
Heart of the Supply Chain . . . . . . . . . 1              material handling logistics is its partner for achieving success.
Executive Commentary . . . . . . . . . . . 2
CICMHE Corner . . . . . . . . . . . . . . . . . . 4        By Ray Kulwiec                                      manufacturers must take
MHIA ShowPro 2000. . . . . . . . . . . . . . 4             Ray Kulwiec Associates                              the lead in ensuring that
Mharcom Marketing Concepts. . . . . 5                                                                          their supply chain is as ef-
Technology Watch . . . . . . . . . . . . . . . 6                                                               ficient and competitive as
                                                                         ore than ever, today’s manufactur- possible.

MHIA Recruitment Program . . . . . . . 6
New Concepts . . . . . . . . . . . . . . . . . . . 7                     ers need to be lean and competi-         Inventory can be especially hazardous to the
Carousel Safety Standards . . . . . . . . 7                              tive. How do they get that way? health of a supply chain. The cost of carrying in-
                                                           Agility and flexibility are good starting blocks, ventory is often significant. Even more impor-
MHind Twister . . . . . . . . . . . . . . . . . . . 7
                                                           but manufacturers must also be leaders in their tant is the risk of obsolescence, given today’s
Lifetime Service Award . . . . . . . . . . . 8
                                                           supply chain. Among other things, this means short—and shrinking—product life cycles. If re-
New e-Mhove Newsletter. . . . . . . . . 8                  understanding the impact of new trends and dundant inventories are built up at various levels
MHIA New Members . . . . . . . . . . . . . 8               paradigms. For example, what do the following in the supply chain, then manufacturers, whole-
MHIA Internet Portal . . . . . . . . . . . . . 9           four trends have in common?                         salers, and retailers run the risk of holding aging
U.S. B2B Evolution . . . . . . . . . . . . . . 10             • Customization                                  goods while their competitors hit the market
Industry Events . . . . . . . . . . . . . . . . . 11          • Globalization                                  with new products.
ProMat 2001 . . . . . . . . . . . . . . . . . . . . 12        • Supply chain management
                                                                                                                                     Figure 1
MHIA Annual Meeting . . . . . . . . . . . 12                  • e-business and e-commerce                               Manufacturing Wheel of Fortune
APMHC . . . . . . . . . . . . . . . . . . . . . . . . 13      The answer is, “Getting the right product to
                                                           the right place at the right time and at the right                    in       e-Com sine
Calendar of Events . . . . . . . . . . . . . . 16                                                                              ha ent           m
                                                                                                                          Mana ply C

                                                                                                                                                  ss ce


                                                              Sounds familiar—almost like a cliché. But to-

MHMS Outlook                                               day, manufacturing has an expanded level of re-
Material Handling Investments . . . 14                     sponsibility for achieving this all-important, on-

MHMS Membership . . . . . . . . . . . . . 15               going goal.


Trust a Certified Expert . . . . . . . . . . 15

                                                              Traditionally, manufacturing fed into distri-

                                                                                                                                           z   ati
                                                                                                                                       ali        on
                                                           bution. After the product was made, it was                              Glob
                                                           transferred to a warehouse, and the “channels of
                                                           distribution” took over. Manufacturing could Manufacturing “wheel of fortune” depicting
                                                           continue operating its equipment at high vol- the four key issues which have a major impact
                                                           umes and enjoy the economies of long runs. on the future of manufacturing.
Check out the MHIA electronic newsletter                   Someone else would deal with moving the in-
                                                           ventory. It was basically a “push” system.          The Wheel of Fortune
                                                              Today, the rules have changed. “Pull” is re-        Figure 1 depicts the four trends in manufac-
                                                           placing “push.” Manufacturing’s vision is no turing as equal and integral parts of a manufac-
                                                           longer limited to within the factory walls. Manu- turing wheel. Here’s how each affects manufac-
                       on-line at:                         facturing is now at the center of the supply chain turing.                                      that also includes suppliers, distributors, retail-    Customization: In an effort to customize
                                                           ers, and ultimate customers. This means that products to better satisfy end-users, manufactur-
                                                                                                                                               continued on page 3

The Art of Differentiating:
                                                     As a matter of fact, today there are over
                                                  16,000,000 domains worldwide and monthly
                                                  Web traffic in bytes (shown as exponential)
                                                  has grown from 5.E+12 to approximately
                                                  1.E+20 today (that’s a lot of zeros!).
                                                     Another former advantage, nearness to
                                                  markets, has been made far less relevant by               Both the Peppers and Rogers Group in their
                                                  significant change in end-to-end management            popular work on 1-to-1 Marketing and Betsy
                                                  and control of the supply chain. It has been           Sanders in her book on Fabled Service charac-
                                                  said that every end-user is only seven seconds         terize why customers are lost. Ms. Sanders’
                                                  away from another potential source of supply.          statistics reprinted by permission from The
                                                  Next-day, and sometimes same-day, delivery             Pryor Report say that customers leave due to:
                                                  around the world becoming more and more                death (1%), movement (3%), influence by
                                                  commonplace.                                           friends (5%), competition (9%), product dissat-
By John B. Nofsinger, CEO                            Where, then, might we turn to create oppor-         isfaction (14%), and the attitude of indifference
Material Handling Industry of America             tunities for differentiating in this bold new          on the part of a company employee (68%).
                                                  commercial world? I submit that the answer to             Excellence in service is a merger of technol-
                                                  this question lies, as it always has, in the area of   ogy and attitude. The latter being that which
          nce upon a time, superiority in any     exceeding customer expectations through ex-            we can most naturally control on a day-to-day

O         of these procurement components
          could be the basis for strong differ-
entiation of brands and providers.
                                                  emplary customer care.                                 basis to set our service apart.
                                                                                                            I was reminded of this recently when invit-
                                                                                                           ing a number of CEOs from America’s lead-
   But then, yesterday’s superiority became                                                                ing corporations to visit our recent NA 2000
the benchmark of today’s new expectations.                                                                 event. Responses to such invitations are un-
Over a period of two management generations                                                               expected. Allow me to share one from the
(particularly the latter), we have moved to                                                               Chairman and CEO of Nike, Mr. Philip
where excellence in two, then three, then four                                                            Knight.
of the components is needed on a daily basis to                                                             Now, I’m not certain if Mr. Knight actually
simply maintain shares of mind and market.                                                               signed the letter or caused it to be signed. That
Some leading “best of breed” companies today                                                             really isn’t the point. What comes across to me
have made great strides in setting a new bench-                                                          is a corporate culture that humanizes and per-
mark, where excellence of all five of the                                                                sonalizes. At least to this writer, the effort has
elements are present —a factor that is certain                                                           helped to create an important point of differ-
to create a new expectation for tomorrow.                                                                entiation that will influence decisions at the
   There also was a time long, long ago (in In-                                                          market level.
ternet terms), when a good graphic designer                                                                 We, and our organizations, have dozens of
with clever programming support could create                                                             opportunities every day to personalize rela-
“knock your socks off” differentiation on the                                                            tionships and build loyalty through attention to
“new” Internet.                                                                                          what may seem like small details. We create
   We all know that the opportunity to con-                                                              our own culture and attitude of care at all
tinue Web-based differentiation remains at                                                               levels.
once significant and complicated as Web sites                                                               I trust that Mr. Knight will not be troubled
proliferate and growth of browsing services                                                              by my ending this article with a famous mark of
explodes.                                                                                                his company — JUST DO IT!

2     On The Mhove

  continued from page 1
                                                                           Figure 3
  ers today have to be capable of operating over                  Manufacturer-to-Consumer                    agement systems (WMS). Together with trans-
  short runs and producing in small lot sizes.                        Shipment Model                          portation management systems (TMS), these
  They must respond quickly to short lead times                                                               “operational” systems can be tied in with
  and be able to make quick changeovers and                             Raw materials and                     broader-based planning software, such as sup-
  have short setup times.                                                 components                          ply chain planning (SCP) and enterprise re-
     Globalization: Competition today is world-                                                               source planning (ERP) systems, to integrate
  wide, with supply chains crossing borders and                           Manufacturer                        processes across all supply chain levels.
  oceans. To compete, one must search out the
  best supply sources throughout the world,                         Manufacturer warehouse                    The Flexible Enterprise
  while serving a customer base that is increas-                                                                 Because flexibility and agility are high prior-
  ingly international in scope.                                            Customer                           ities, manufacturers faced with the need for
     Supply chain management: Many manufac-                                                                   greater output and capacity will most likely
  turers have adopted JIT techniques and con-                                                                 continue to invest in productivity-enhancing
  tinuous-flow manufacturing in order to be             A “lean” manufacturer-to-consumer supply              equipment and technologies rather than in
                                                        chain model presents manufacturers with the
  lean, efficient, and competitive. Their vision                                                              plant expansions or new facilities. Priority one
                                                        greatest level of responsibility for “getting
  must also include the efficiency of the entire        the right product to the right place at the           will be to get the most out of existing facilities
  supply chain infrastructure. Some companies           right time and at the right price.” Adapted           utilizing “smart” material handling.
  are seeking to streamline their supply chains,        from “Retail Trends and Their Impact on                  In some cases, a contract manufacturer may
  in order to drive out cost and to improve lead        Suppliers’ Application of Conveyor Systems,”          help to fill in with additional capacity when
  times. Figure 2 shows a new model for con-            Conveyor Products Section, (MHIA), 1999.              needed or to provide specialized expertise on
  sumer goods manufacturing, where wholesale                                                                  special projects. The contract manufacturer
  and retail distribution centers are eliminated        proached $8 billion in 1997. Last year, they          typically works within an envelope of fixed
  by shipping directly from the manufacturer to         were nearing $100 billion. By 2003, Internet          assets, including plant building, existing
  retail stores. An even “leaner” scenario is the       sales are expected to be $1.4 trillion. This is       equipment, and finite capacity.
  shipping of goods directly from manufacturers         revolutionary growth, with the B2B segment               On the other hand, a new third-party alter-
  to consumers, Figure 3.                               being by far the largest. Of the $1.4 trillion pro-   native, the “next generation” or “virtual” man-
     Internet revolution: The Internet provides         jected for 2003, $1.3 trillion is expected to be      ufacturer, owns no plant or equipment and has
  opportunities for 1) e-business—the integra-          between businesses. But consumer e-com-               no capacity limitations. Using a small core staff
  tion of processes and sharing of information          merce is also growing rapidly. The model in           working through a Web-based network, this
  such as order data, production status, material       Figure 3 suggests that manufacturers will be          company identifies the manufacturing re-
  tracking, and demand forecasting among supply         part of this growth as well.                          sources worldwide that can be applied to fulfill
  chain partners, and 2) e-commerce—transac-                                                                  client needs. The virtual manufacturer enables
  tions involving either business-to-business           Role of Material Handling Logistics                   a client company to focus on its core compe-
  (B2B) or business-to-consumer (B2C) sales.               A broader role for manufacturing in the sup-       tency while having access to specialized or
     E-commerce, in particular, has been tagged         ply chain also means a broader role for material      advanced technologies and reducing the
  a “revolution.” Total U.S. Internet sales ap-         handling. In addition to the traditional types of     time-to-market ratio.
                                                        material handling equipment and systems                  One such provider recently took on this type
                         Figure 2                       found on the manufacturing floor, there is also       of challenge for a U.S. eyecare products manu-
                                     Direct-to-Store    an increased focus on the systems used by busi-       facturer faced with developing and making a
Traditional Supply Chain
                                    Shipment Model      nesses for distribution. These include sortation      unique product outside of its area of expertise.
    Raw materials and               Raw materials and   systems, high-density dynamic storage, and            The virtual manufacturer identified the solu-
      components                      components        light-directed pick-and-put systems. Compli-          tion in a high-quality, low-cost producer in
                                                        ance labeling will become more vital, as manu-        Asia which holds the required production
      Manufacturer                    Manufacturer      facturers become more directly involved in            expertise and capacity. This Web-based
                                                        meeting retailer requirements.                        approach “got the right product to the right
 Manufacturer warehouse       Manufacturer warehouse       Manufacturers will become even more in-            place at the right time and at the right price”
                                                        volved with shipping small orders involving           for the eyecare products manufacturer, equal-
   Distribution center                 Retail store
                                                        parcels, cartons, and containers. When unit           ing a successful solution.
                                                        loads are assembled on pallets, an increasing            Welcome to the e-world.
                                                        number will be mixed loads, and these loads
    Retail warehouse                    Customer
                                                        are ultimately broken down for small-lot deliv-          Ray Kulwiec is a communications consultant
                                                        eries down the line.                                  and writer specializing in material handling and
       Retail store                                        Broader use of software tools is also key to       manufacturing topics. Based in Arlington
                                                        competing for manufacturers. Those using              Heights, IL, he has covered the field of material
       Customer                                         manufacturing execution systems (MES) as an           handling for many years as an editor and has
                                                        integration tool, to balance the flow of materi-      served on the Board of Directors of the Materi-
  This direct-to-store shipment model cuts two          als and work-in-process with available                als Handling & Management Society. Mr. Kul-
  levels out of the traditional supply chain for        resources and schedules, are increasing in            wiec has also been a member of the College
  consumer goods. Adapted from “Retail                  number. A logical downstream link that would          Industry Council on Material Handling Educa-
  Trends and Their Impact on Suppliers’                 bring the manufacturer closer to the customer         tion. Currently he is on the Board of Trustees
  Application of Conveyor Systems,” Conveyor
                                                        is represented by logistics execution systems         for the Material Handling Institute. He may be
  Product Section, Material Handling Industry
  of America (MHIA), 1999.                              (LES) software, also called warehouse man-            reached at


        OSHA and Ergonomics:
                                                    ponents to address
                        CORNER                      ergonomic health.
                                                    First, it provides an
Dr. Richard Lindeke                                 educational “pack”
                                                                                                           ShowPro 2000
CICMHE President
University of Minnesota-Duluth
                                                    to help develop er-
                                                    gonomics training at
                                                                                                             Coming to
                                                    your facility. Sec-
                                                    ond, it provides                                         Chicago in
         his time, it sincerely looks like the      an interactive er-
T        threatened Ergonomic Standard
         (39CFR Part 1910) will be pushed
                                                    gonomic risk assess-
                                                    ment tool that includes the most recognized
                                                                                                                       aterial Handling Industry of

through by OSHA. At the Material Handling           ergonomic evaluation tools. Finally, it recom-
Industry of America (MHIA) Spring Meeting           mends equipment options for designing                              America (MHIA) exhibitors and
in Charlotte, I heard the reasoned thoughts of      ergonomic workplaces that will effectively                         member companies will have the
                                                    eliminate hazards before they can lead to injury.    opportunity to learn from the best in the trade
Mr. Scott Railton, senior labor partner with
                                                                                                         show business at MHIA’s two-day ShowPro
Reed Smith Shaw and McClay in Washington,           All this in a CD-ROM package available from
                                                                                                         trade show workshop. The workshop will be
DC, as he discussed the new standard. He be-        MHIA for $75.00.
                                                                                                         held August 17 and 18, 2000, at the Swissôtel
lieves it will be put into action before the cur-      We must recognize the financial support
                                                                                                         in Chicago, IL.
rent administration steps down.                     provided for this tool by Columbus-McKin-
                                                                                                            MHIA’s one-of-a-kind trade show workshop
   MHIA has always been a key force leading         non, Gorbel, and the Material Handling
                                                                                                         combines speakers and interactive seminars,
the battle against ergonomics problems and in-      Education Foundation Inc., (MHEFI). We
                                                                                                         providing exhibiting companies with all the in-
juries to workers caused by manual material         must also recognize the expertise of the EASE
                                                                                                         formation they need for their successful Pro-
handling tasks. What should be our response         development team including Peter Hong
                                                                                                         Mat 2001 preshow planning and promotions.
when the standard passes? We should put our         (Positech), Dave Butwid (Gorbel), and Brian
                                                                                                            Recognized industry experts, Dr. Allen
factories into the forefront as demonstration       McNamara (Southworth International) along
                                                                                                         Konopacki and Steve Miller, will speak at the
places for compliance and ergonomic health.         with CICMHE members Andrew Liou
                                                                                                         event. A variety of topics to enhance show per-
   The members of the Ergonomic Assist Sys-         (Cleveland State University) and myself.
                                                                                                         formance will be discussed. MHIA ShowPro
tem Equipment (EASE) Council have worked            Finally, thanks to the staff at MHIA for their
                                                                                                         2000 will focus on everything from setting show
to eliminate the problems of cumulative trauma      tireless efforts that led to this product.
                                                                                                         goals and objectives to placing ProMat 2001
disorders (CTD) and acute musculoskeletal in-          The CD-ROM is an outstanding example of
                                                                                                         show orders.
juries. EASE and College Industry Council on        what can be accomplished when the MHIA
                                                                                                            The first day of the workshop will feature top-
Material Handling Education (CICMHE) have           member companies, product sections and
                                                                                                         ics such as “The Click-and-Mortar ProMat,” an
spent the last several years de-                                   councils, and CICMHE mem-
                                                                                                         examination of how a three-dimensional event,
veloping a CD-ROM that will                                        bers work together to accom-
                                                                                                         like ProMat, fits into today’s technology-driven
help manufacturers and ware-                                       plish something for the “Good of
                                                                                                         business world. Attendees will then learn how
house operators proactively                                        the Industry.” We at CICMHE
                                                                                                         to get the highest year-round “return on invest-
address ergonomic risks in                                         hope that efforts such as this con-
                                                                                                         ment” from their trade show participation.
their businesses. This tool, The                                   tinue and grow in importance —
                                                                                                         Case studies of “20 Killer Promotions & 10
Ergonomics Toolbox, pro-                                           We are here to serve!
                                                                                                         That Died” will be presented. Exhibit booth
vides several important com-                                                                             design and staffing strategies will then be dis-
                                                                                                         cussed along with the newest trends in the trade
                                                                                                         show industry. Attendees will have the oppor-
                                  TRAINER’S CORNER                                                       tunity to ask questions and place orders with
                                                                                                         ProMat 2001 service contractors.
                Introducing the “Trainer’s Corner”                                                          MHIA member companies and trade
                                                                                                         show exhibitors can register for free admis-
                Allan Howie, Director of Training, Material Handling Institute                           sion to MHIA ShowPro 2000 on-line at:
       Those of you involved in the hiring, training, and recruitment of employees may wish to  For more infor-
    note that the quarterly publication, The Trainer’s Page, is now incorporated into our indus-         mation, contact Jennifer Resio at 704/676-1190
    try newsletter, On The Mhove. Information regarding MHIA and the Material Handling                   or e-mail
    Institute’s training activities and information may be found in “The Trainer’s Corner,” with
    additional information available in the monthly e-Mhove newsletter at:


4      On The Mhove

                                                                                                                vidualization of the product, your product is now
                                                                                                                worth more to them. It is, in fact, a different prod-
                                                                                                                uct now than it was when the relationship began.
                                                                                                                This Individualization breeds loyalty because, be-
                                                                                                                fore a competitor can offer the same type of cus-

  Traditional and 1-to-1 Marketing Concepts                                                                     tomization, your customer would first have to re-
                                                                                                                teach the competitor what he has already taught
                                                                                                                you, just to get back to the same level of conve-
             Work Together to Acquire New Customers                                                             nience. Individualization can virtually eliminate
                                                                                                                discounts. New customers can still be enticed with
                                                                                                                discounts or introductory prices, but regular cus-
                             and Lock in Their Loyalty                                                          tomers will not want to take advantage of these
                                                                                                                prices because they are already receiving a far
                                                                                                                more valuable, more convenient product.
Carol Miller                                              the entire enterprise — all of its functions, divi-      Promotion touches on Identification, Interac-
Director-Marketing Communications                         sions, and geographies.                               tion, and Integrity. The traditional marketer is
Material Handling Industry of America                   • Integrity: More than is the case with traditional     most concerned with crafting an outbound mes-
                                                          marketing, the customers of a 1-to-1 marketer         sage that conveys the benefits of a product to the
                                                          must collaborate with you, and this means you         target market. But while this kind of promotion is
        hilip Kotler defined the four Ps of tradi-        must secure their trust.

                                                                                                                still important, what is just as important is that the
        tional marketing in 1960 as Product,                                                                    communication stream allows customers to Iden-
        Place, Price, and Promotion. Everyone           How Do the Four P’s Fit within the                      tify themselves and to communicate back.
within the target market receives the same mar-         Context of the Five I’s?                                   This means you must pay attention, not just to
keting based on these four P’s. The target market           Product is accounted for in both Individualiza-     the cost-efficiency of the outbound message itself
could be a large mass market or a smaller niche         tion and Integration. Individualization implies a       — reach and frequency, for instance, or CPM —
market. While the four P’s help define how a            customization of product, service, and communi-         but to the cost-efficiency and convenience of the
company should behave toward all its customers,         cation stream to each individual customer. Ulti-        Interaction as well. Thus, your promotional ef-
more recent marketing concepts define how a             mately, however, to Individualize the way you be-       forts should be linked to toll-free numbers, Web
company should behave to individual customers.          have toward a particular customer, you must be          pages, and other interactive mechanisms de-
                                                        capable of Integrating your behavior with what          signed to generate as much useful feedback from
1-to-1 Marketing                                        you know of the individual customer’s needs and         individual customers as possible, and to do this
   One such concept is 1-to-1 marketing, devel-         preferences.                                            with as little cost as possible. While the initial
oped by the Peppers and Rogers Group. Focused               The primary strategists for a traditional mar-      feedback from a customer may be oriented solely
on the individual customer, 1-to-1 marketing is         keter are the product managers. But in integrating      around the product features and benefits pre-
based on the idea of an enterprise knowing its cus-     all product and service relationships with a single     ferred by that customer, over time you will want
tomer. Through interactions with that customer,         customer, the primary strategist will be a customer     to develop a deeper and more intimate learning
the enterprise can learn how he or she wants to be      manager. The role of the customer manager will          relationship. To do this you must demonstrate In-
treated. The enterprise is then able to treat this      be to decide how to maximize the long-term value        tegrity with respect to the way you use (or don’t
customer differently than other customers. How-         of each particular customer, across all product and     use) individual customer information.
ever, 1-to-1 marketing does not mean that every         service lines. An important part of this Integrated        The strategies you put in place to acquire cus-
single customer needs to be treated uniquely;           effort will be played by the capabilities manager,      tomers by promoting a product are quite differ-
rather, it means that each customer has a direct in-    who must determine how you can best deliver the         ent, and largely unrelated, to the strategies you
put into the way the enterprise behaves with re-        capabilities required to offer the products and ser-    use to secure customer loyalty and to protect your
spect to him or her. This customer-focused busi-        vices the customer managers require.                    profit margins over time.
ness model has also been called customer                    Place involves the distribution and offer of a         Why not pursue both strategies, more or less si-
relationship management (CRM), relationship             product and should be considered part of the In-        multaneously? Use traditional marketing, relying
marketing, real-time marketing, customer inti-          tegration process. As the customer manager and          on the Four P’s, to continue to acquire new cus-
macy, and a variety of other terms.                     capabilities manager interact to specify and de-        tomers, while at the same time transforming your
                                                        liver the right product or service to an individual     company into a 1-to-1 enterprise by utilizing the
The Five I’s                                            customer, the channel through which that prod-          Five I’s, so you can keep your most valuable cus-
    1-to-1 marketing defines marketing in terms of      uct is delivered is critical. The more complex your     tomers loyal.
Five I’s: Identification, Individualization, Interac-   distribution system is already, and the more lever-        To learn more about 1-to-1 marketing, attend
tion, Integration, and Integrity.                       age or market power the channel members them-           the next MHIA Marketing Communications Fo-
• Identification: Know who your customers are,          selves have over you, the more difficult this pro-      rum (Mharcom) meeting August 23-24, 2000, in
   in as much detail as possible.                       cess will be.                                           Annapolis, MD. For complete information on
• Individualization: Once a firm’s customers                Price can often be specific to the customer, and    this event, visit or con-
   have been identified, the next step is to individ-   it should be considered part of the Individualiza-      tact Carol Miller at 704/676-1190 or e-mail
   ualize the firm’s approach to each customer.         tion process. A learning relationship is created
• Interaction: Dialogue with a customer is neces-       when a customer interacts to specify a product,
   sary to gain a greater understanding of both the     you customize the product to meet these needs,           Check out the MHIA electronic newsletter
   customer’s articulated and nonarticulated            and then further customer feedback is solicited.
   needs, and their potential value to you.             With each such iteration, the product is more ac-
• Integration: All aspects of your behavior to-         curately Individualized for this customer.
                                                                                                                                    on-line at:
   ward each customer must be driven by your                Because the customer has expended time
   knowledge of that individual customer, across        and/or effort to facilitate the more accurate Indi-


                                                                                                              Updating the
    Remember the Metric                                                                                          MHIA
        IT’S STILL                                                                                            Recruitment
        CREEPING                                                                                                     Program
Dr. Mike Ogle, Ph.D.
Director of Technical & Engineering Services
Material Handling Industry of America                 Efforts to Raise Metric Awareness
                                                         The U.S. Metric Association (USMA),
                                                      Inc., founded in 1916, advocates U.S.
         redictions were made decades ago that        conversion to the metric system

P        by now we would have metrified high-
         way signs (kilometers) and gas pumps
(liters). Attempts to convert to each of these
                                                      ( Most
                                                      federal agencies have already switched to
                                                      metric. U.S. contractors do over $50 billion in
measurements have failed... for the U.S., that is.    business overseas in metric, each year accord-
                                                      ing to the Construction Metrication Council
One of Three Holdouts                                 (CMC) of the National Institutes of Building
   Originally invented by a Frenchman in 1670,        Sciences (NIBS). CMC promotes the use of            Allan Howie
the International System of Units (SI) has            metric measurements in construction                 Director of Training
been officially adopted by all but three coun-        ( Federal
                                                                                                          Material Handling Institute
tries: Liberia, Myanmar (Burma), and the              metric building construction is approximately
United States. These three countries represent        $10 billion annually with virtually all major
only 5% of the world population, but U.S. eco-        federally funded buildings designed and                      he Material Handling Industry of
nomic power and its geographic isolation help
diminish pressure to convert. In 1988, the Om-
nibus Trade and Competitiveness Act de-
                                                      built using metric. The National Institute
                                                      of Standards and Technology (NIST,
                                                      part of the Commerce Department, http://
                                                                                                          T        America (MHIA) promotional and
                                                                                                                   recruitment program, Introducing the
                                                                                                          Material Handling Industry, has been “on the
clared metric as the preferred system of             streets” since NA 2000. MHIA members have
weights and measures in the U.S. Preferred            states that “Because of the metric system’s         received a complimentary copy of the
means voluntary, and we don’t seem to be vol-         importance as an international standard, its        video/DVD, and the feedback received by
unteering...or are we?                                use in product design, manufacturing, mar-          your MHIA training department is extremely
                                                      keting, and labeling is essential for U.S. indus-   positive.
What Has Moved to Metric?                             try’s success in the global marketplace.” Do           Your ideas for expansion of the program in-
   3.5” floppy disks are actually 90 mm. Scientific   you feel the same way?                              clude:
laboratories, your prescriptions, and your local                                                          • Information on more resource organizations
hospital are metric. 35 mm film. Wine and li-         What About a Metric Future for                         and agencies that can assist member compa-
quor. 2-liter Coke bottles. Grams of fat in foods.    Material Handling?                                     nies in locating qualified individuals to hire
5k or 10k runs. Metric tool sets for bikes and           What measures do you tend to deal with in        • Guidelines and suggestions for promoting,
cars. Prepackaged goods in the U.S. must now          material handling? Very few have moved to              holding, and sponsoring recruitment ses-
label using both measurements. The U.S. adopts        metric. Where has metric crept in without your         sions and job fairs locally
many International Organization for Standard-         realizing it? Have you actively looked for op-         The staff of the Material Handling Institute
ization (ISO) standards that are in metric mea-       portunities to adopt it? Are you missing any        is investigating the best ways to implement
surements. Olympic events are metric.                 export opportunities because of a lack of met-      these suggestions for expansion of the
                                                      ric capability? (Canada and Mexico build in         program. We want your input and suggestions!
Hard and Soft Conversions                             metric units and are 70% of U.S. export busi-       If you have any feedback regarding expansion
  Nonmetric measurements may be converted             ness.) I would be interested to hear your an-       ideas for this program, please contact
by hard or soft conversion. A soft conversion         swers; e-mail them to:              Allan Howie at 704/676-1190 or e-mail
recalculates the measure in metric terms (e.g.,          In the end, the metric system will eventually
when an item with a one-foot measurement              take hold with some painful changes, despite           If you are a member company AND the del-
does not change size, but is measured as 308.4        the cultural and infrastructure barriers. The       egate to MHIA, and you have not yet received
millimeters). A hard conversion actually re-          changes will likely be gradual and happen for       your complimentary copy of Introducing the
quires physical change to match a rounded             business and consumer reasons, not by govern-       Material Handling Industry, contact Allan
metric value (e.g., 2-liter Coke bottles).            mental edict or direct influence.                   Howie.

6     On The Mhove

   Not All New Concepts
  Are Found at the Detroit
  or Chicago Auto Shows
By Dr. Richard E. Ward                              You have to take time to really
President                                           look at what is being displayed,
Material Handling Institute                         and more importantly, you have
                                                    to ask those staffing the booth:
        he photo shown here is certain to           What’s New!?

T       cause heads to turn. It did mine. I took
        this picture at the Hannover Fair
(Messe) in March 2000. It is Europe’s largest
                                                       We are all in a hurry. We get
                                                    focused on one or two missions
                                                    and sometimes miss the impor-
trade show venue for material handling tech-        tant stuff. It happened to me at
nology.                                             NA 2000 in Detroit. You would
   An interesting point is that this was only one   think I should know better, I
of three such concept industrial trucks (a.k.a.     have been around the business
fork trucks) at this year’s fair.                   long enough. A glowing example, and there                If you missed the show entirely, or if you
   The point I wish to make is that it is at        were many, is my walking past a large automa-         want to take a second look, why not go to the
venues such as this, including at our own trade     tion systems booth where a singulator was             Material Handling Industry of America’s Web
shows in the U.S., where you can see what’s on      feeding a tilt tray sorter, and saying to myself, I   site at and navigate to
the technology horizon; what’s soon to come         guess it is just another display demonstrating        the NA 2000 list of exhibitors. They are waiting
on-line if it hasn’t already; and where the seeds   how things work together. It wasn’t, it was an        for your call or e-mail message.
of change and opportunity begin germinating         entirely knew concept of singulation with                Better yet, plan for an extra day at ProMat
in our minds as to new and possibly better ways     many benefits. It wasn’t until a friend said,         next February, so you won’t have to hurry, and
to solve the material handling problems that        “Did you see that new singulation technol-            you, too, can ask . . . What’s New!? Believe me,
confront us every day.                              ogy?” that I headed back to discover what I           it pays off. And what you will discover, you
   Concept presentations, such as this fork         had missed.                                           could never find in any other way, short of trav-
truck, are only the tip of the iceberg, however,       From then on, I made it my focus to comb           eling from city to city and visiting every supplier.
when it comes to discovering what’s new at a        the floor carefully. I then discovered literally         Tell me trade shows are becoming di-
trade show. The obvious things are easy to          dozens of new technologies imbedded in the            nosaurs, and I will tell you that computers and
spot, but most of what is new is not so obvious.    things we tend to take for granted as “old hat.”      word processors save paper!

  National Carousel Safety Standards in the Making                                                           MHind Twister
         arlier this spring, MHIA received no-      fore, the term “in the making” takes on a spe-           Two forklift drivers (Buster and

E        tice from the American National
         Standards Institute (ANSI) that its
application to expand its scope as a standards-
                                                    cial meaning. . . that being that these things
                                                    don’t happen overnight, despite the need.
                                                       The good news is that, since work began a
                                                                                                             Crash) were known for racing each
                                                                                                             other about the warehouse (not a
                                                                                                             recommended practice). After
setting body, to include Carousels, had been        year ago, the Carousel working group has set             assigning specific lifts with equal
approved. In fact, the expanded scope in-           the objective of sending out the first two stan-         speed to each of the drivers, the
cludes Horizontal and Vertical Carousels as         dards for public comment in September 2000.              warehouse supervisor presented a
well as Vertical Lift Modules (VLM), the               Anyone with experience can request that               challenge to them: a race to pick up
latter being a special form of vertical storage     they be added to the public canvas list for these        a pallet load at the end of the aisle.
and retrieval.                                      standards, meaning they receive the draft stan-          There was a catch, however; the
   Knowing the need (there are no existing          dard and are then expected to review it and              forklift that arrived last would be the
carousel-related standards in the U.S.) and an-     pass judgement. The eventual goal (following             winner. The drivers wandered
ticipating ANSI’s approval, as just noted, work     appropriate revisions) is unanimous approval.            around the facility aimlessly for
actually began drafting a Horizontal Carousel          If you would like to be added to the                  hours to avoid finishing first. Finally
standard in 1999. A standard for Vertical           public canvas list, please contact either                Buster and Crash asked a wise old
Carousels was begun in the fall, 1999.              Mike Ogle or Dick Ward                    truck driver for help. After hearing
   However, the process for arriving at a con- at MHIA’s office in Char-                 his advice, they jumped on the lifts
sensus standard is deliber-                                              lotte 704/676-1190. The             and raced off to pick up the pallet
ately slow, as it should be,                                             bigger the list, the more           load. What was said to the drivers?
to allow all interested par-                                             thorough the reviews,
ties the opportunity to af-                                              the better the standard in                      Answer on page 12
fect the outcome. There-                                                 the end.


                                               Bernie Knill Presented
                                               Lifetime                                                Introduces the
                                            Service Award                                              NEW e-Mhove

Bernie Knill and George Prest

       t the MHIA Spring Meeting of Products Sections &
A      Councils, the Material Handling Industry Board of
Governors presented Bernie Knill with a Lifetime Service
                                                                                                        n June 2000, Material Handling Industry
   For more than 35 years, Bernie served as editor of Mate-
rial Handling (Engineering) Management magazine. His
special passion for raising the awareness, recognition, and
                                                                                                    I   of America (MHIA) introduced the new
                                                                                                        e-Mhove on-line newsletter. e-Mhove is
                                                                                                    the first interactive, graphically enhanced in-
                                                                                                    dustry newsletter to hit the material handling
credibility of material handling resulted in many awards for
                                                                                                    scene, and we think you will agree — it’s ex-
exceptional editorial performance and industry service.
                                                                                                    citing! Briefly outlined here, the new
   Included in Mr. Knill’s long list of awards are four Jesse
                                                                                                    e-Mhove offers topics of interest to a variety
H. Neal awards, 20 awards from the American Society of John Nofsinger and George
                                                                                                    of readers.
Business Press Editors (ASBPE), The William T. Shirk Prest presenting Bernie Knill
Award from the Materials Handling and Management Soci- with the Lifetime Service Award.             Hot News & Industry Trends...
ety, the coveted Reed-Apple Award from the Material                                                 • Hot Items...covers the most important indus-
Handling Education Foundation, Inc., and the first-ever career recognition award by ASBPE.            try news and MHIA’s key issues.
   In June 2000, Mr. Knill stepped down from his editorial responsibilities to begin a well-        • Technology & Product News...takes you
earned and well-deserved retirement.                                                                  quickly into the world of material handling to
                                                                                                      learn more about issues that face our industry
                                                                                                      and the advances in technology that are break-
                MHIA NEW MEMBERS                                                                      ing barriers.
                                                                                                    • Economics & Research...holds the keys to an
    A&A Manufacturing Company, Inc.                  Mazzella Crane & Hoist Service
    B&R Specialties                                  Miracle Software Systems, Inc.                   area that we are all concerned with — Where
    Baker Concrete Construction, Inc.                MMP Ergonomics Company                           is our industry in the greater scheme of things?
    Bullet Pallet Systems, Inc.                      Mod-Tech, Inc.                                   How can we keep our scope open and reliable
    C Tek Industrial Products, Inc.                  Nolu Plastics
    CAIB America Corporation                         O’Brien Partition Company
                                                                                                      information about our industry within our
    Camp, Dresser & McKee                            Orchid International, Inc.                       grasp?
    Carlson Systems Engineering                      P.W. Platforms, Inc.                           • Marketing...has information that primarily
    Cleaver, Ketko, Gorlitz, Papa                    PacMaster by Schliecher                          centers around what your company can do to
    Conec, Inc.                                      Peterson Manufacturing Corp/Fabmaster
    Conveyor Tech                                    Philadelphia Scientific                          more educatedly market your products and
    Cutler Hammer                                    Plastics Unlimited, Inc.                         services to those who use them. This includes
    Dayton T. Brown Engineering & Testing Division   Ramsey, A Thermo Sentron Company                 the introduction of e-commerce into your mar-
    Donachie, Fenton & Associates                    Reel Neat Systems, Inc.
    Drivecon Corporation                             Remote Equipment Systems, Inc.
                                                                                                      keting plans, how to use your association to                                    Rice Lake Weighing Systems                       build knowledge, and what training is available
    Environmental Systems Research Institute, Inc.   RMT Engineering Ltd.                             to help you be at your best at trade events.
    Ergo Solutions, Inc.                             Rubbair Door Division of Eckel                 • Membership & Member Services...brings to
    Ergotech, Inc.                                   SailRail Automated Systems
    eSYNC International                              Schmalz, Inc.                                    light the services that MHIA provides to our
    Express, Inc.                                    Sealeze, a unit of Jason, Inc.                   member companies, as well as the ample op-
    Fallshaw Holdings P/L                            Sichelschmidt                                    portunities to participate in seminars and exer-
    Flexlink Systems, Inc.                           Sol Plastics
    GE Plastics                                      Street Crane Company Limited                     cises that can help you utilize your member-
    Global Storage Systems                           Structural Plastics Corporation                  ship in MHIA.
    Greenwood Forest Products, Inc.                  Superior Casters                               • Newsletter Archives...houses past issues of the
    Hedstrom Corporation - Bedford                   ToolWorx Information Products
    Hoover Materials Handling Group, Inc.            Top Tier LLC
                                                                                                      MHIA newsletters, On The Mhove and e-
    Hyundai Construction Equipment                   Total Crane Systems, Inc.                        Mhove. The On The Mhove newsletter is a
    IPL Products, Inc.                               Tri-Tech Services                                quarterly printed publication by MHIA, and it
    ITW Ramset/Redhead                               Viastore Systems, Inc.                           is available for download as a PDF. (You will
    Ken-Mar                                          Welch Allyn, Inc. - Data Collection Division
    Lockwood Manufacturing                           Werner Motor Company Ltd.                        need Adobe Acrobat Reader to view this doc-
    Lodige Foerdertechnik GmbH                       Westmont Industries                              ument. The link to download this program is
    Material Management Solutions                    WhereNet                                         also available on the e-Mhove Home Page
    Material Management Systems, Inc.
                                                                                                      at Past issues of
                                                                                                                                continued on page 16
8      On The Mhove

  MHIA to Develop Material
  Handling Internet Portal
F. Hal Vandiver
Executive Vice President
Material Handling Industry of America

New MHIA Site Debut                                     Redesigning our site and implementing all
   At NA 2000 in April, Material Handling In-        of the necessary design features are a team ef-
dustry of America (MHIA) debuted a re-               fort. Carol Miller, MHIA Director of Market-
designed Material Handling Industry of Amer-         ing Communications, and Steven Huntley, our
ica on-line— The reception has          Web developer, are working diligently to im-
been overwhelmingly successful!                      prove the site’s visibility and drive traffic to it.
                                                     Dr. Richard Ward, MHIA Executive Vice
The “Hunting License”                                President of Professional Development, has
   With the development of this redesigned           undertaken the task of improving our search
site, MHIA now has the “hunting license” to          functionality. Initially, the search function on
take advantage of many Web-based opportu-            the site was a simple “keyword” capability.
nities for our industry. This is vital as we move    This functionality will be bridged with an “ad-        allowing a broader base of user participation
toward our ultimate objective to establish           vance or refined” search by providing special          and training as the Internet portal for the          indexing within the site. Ultimately, visitors            • Electronic Bookstore: The place for pur-
material handling and logistics industry and         will find “solutions” to their problems and            chasing technical books, CDs, standards, tapes,
the communications backbone for our associa-         questions through a “Solution Center” that             and other items presented by the Material
tion. MHIA now invites our members, affiliate        Dr. Ward is prototyping and which will debut           Handling Institute
associations, educators, publications, and           in the third quarter of 2000.                             • My.mhia: A highly personalized page, cus-
users to help us develop this important future                                                              tomized by each visitor, to include important,
business environment.                                What’s Next in MHIA Web Development?                   specifically directed information on the topics
                                                        MHIA is beginning the work required to              and items that the user wishes to view
Redesign Objectives and Progress Report              make a true portal—the source                • Industry Careers: Where content is pro-
   In developing the new site, MHIA set sev-         for everything visitors would use to learn about       vided to promote industry recruiting objec-
eral redesign objectives:                            the material handling and logistics industry.          tives, giving access to recruiting videos, job
1. Refresh the look and feel of the site with or-    Functional workgroups within MHIA have                 posting CDs, and case studies of professional
   ganized, easier-to-find information, crisper      been assembled, and many member volunteers             advancement
   graphics, and increased site movement             are assisting as MHIA develops the plan for               • e-conferences: Web-casting the many edu-
2. Redesign the site’s navigation utilizing          our enhanced Web presence. Here is a short             cational and professional development events
   graphic aides                                     list of the Web site features currently under          currently sponsored by MHIA such as Trade
3. Improve the site’s visibility through meta-       consideration for the MHIA site:                       Show Educational Conferences, the annual
   tagging and significantly enhance search en-         • Members Only: MHIA members can access             4Sight Economic Conference, MHIA Show-
   gine recognition of our site                      and exchange member information available              Pro Exhibitor Workshop, MHIA Human Re-
4. Enhance search functionality                      only to them as a benefit of their membership          sources and Training (HRT), and MHIA
5. Implement basic e-commerce for forum, con-           • Virtual Trade Show Support: The virtual           Marketing and Communications Forum
   ference, meeting registrations, and payment       24-7 complement to our physical events, Pro-           (MHARCOM) conferences and workshops
6. Establish basic data-mining capabilities as a     Mat 2001 and NA 2002, which may include fea-              • Full e-commerce: The capability to sup-
   foundation for future marketing initiatives       tures like an agenda planner, trip scheduler,          port a full transaction-based site, including
   To date, MHIA has implemented objectives          exhibitor registration, directory of exhibits, ex-     commerce between members, their customers,
1, 2, and 6 while successfully migrating and en-     hibitor manual, promotional opportunities,             and suppliers
hancing content from our previous site. Now          press room, exhibit features, and much more!              MHIA invites your comments and recom-
the focus is on items 3 and 4. These are two         The goal of the virtual presence is to allow ex-       mendations for improving existing features
very important next steps required to improve        hibition in MHIA events to extend beyond the           and incorporating new features as we
traffic to the site and improve the ability of the   show itself and “live” before, during, and fol-        move forward with the development of
site to personalize the experience of each visi-     lowing each physical event                    Please send your comments
tor. The goal is for every visitor browsing             • MHITAP® Online: The virtual represen-             and suggestions to Hal Vandiver at 704/676- to find the information that            tation of our highly successful material han-          1190 or e-mail
they are seeking, quickly and easily.                dling territory planning and mapping software             Stay tuned to!



                                    Inside the
                                U.S. B2B Evolution
   By John B. Nofsinger, CEO
                                                                                                                 TABLE 1
   Material Handling Industry of America
                                                                       LEVEL                                     GROWTH Q1-99 vs. Q1-98
                                                                                                           Revenue                             Employment
               e have all seen the figures, like

   W           Chart 1 below, showing the in-
               credible growth projections for
   business-to-business (B2B) electronic com-
                                                                 Level One
                                                                 Level Two
                                                                 Level Three
   merce in USA.
     It’s not hard to get excited over the                       Level Four                                 +127%                                    +78%
   prospects of a projected growth of 12x over the               Source: Center for Research in Electronic Commerce, School of Business - University of Texas at Austin.
   period 1999-2003.

                      Chart 1                                    It’s no wonder that there has been a frenzied hoo, e*Trade, Double Click, PC Order, and
   U.S. Business-to-Business e-Commerce Growth                response to positioning for a share of the infra- ZD Net (to name a few).
        ($millions)                                           structure on which this growth will reside.              Layer Four: The Internet Commerce Indica-
                                                                 While the projection is extraordinary, it tor Layer — Companies conducting Web-
                                                              masks the fact that it is expected to be highly based commerce transactions like Dell, e-
1,200                                                         variable by primary industry sector. A more Toys,, American Airlines, and
                                                              thorough understanding of this expected vari- The (to name a few).
                                                              ability is necessary and critical to the strategic       Growth for Q1-99 vs. Q1-98 in these layers
                                                              planning of infrastructure providers.                can be seen in Table 1.
                                                                 Chart 2, breaks the growth into 12 industry           Yet another useful measure of spending is to
 600                                                          sectors. While we might argue the sector-to- look at an estimate of the magnitude of invest-
                                                              sector projections, it is clear that a few stand ment for both Internet-based infrastructure
                                                              out above the others.                                and related business operations and mainte-
                                                                 To further understand and create metrics nance over the 1999-2003 timeframe.
                                                              against which to measure the Internet econ-              Chart 3, below, is provided by Jupiter Com-
                                                              omy, CISCO Systems has sponsored a study munications, Inc.
    1998        1999         2000       2001    2002   2003
                                                              through the University of Texas. The study               A good portion of the investment growth will
                                                              creates various indicators that look at revenue be available to providers of material handling
                                                              and employment statistics of companies using and logistics equipment/systems and IT
                                                              a four-layer system.                                 providers who aggressively position within sec-
                      Chart 2                                    Layer One: The Internet Infrastructure In- tors to help customers evolve and achieve their
 U.S. Business-to-Business e-Commerce by Industry
                                                              dicator Layer — Various computing back- “eaches” and 1-to-1 market strategies.
1,500                                                         bone, service, access, and network companies
              Industrial Equipment
                  Heavy Industries                            serving as Web/e-commerce enablers.
                         Aerospace                            Companies in Layer One would include                                     Chart 3
                  Pharmaceuticals                                                                                Internet Infrastructure and Related Operations
                 Consumer Goods
                                                              firms like Compaq, Q West, Earthlink,
                                                              and Corning (to name a few).                                     & Maintenance Spending
                Food & Agriculture
 900                                                                                                                 ($ billions)                     Infrastructure
          Shipping & Warehousing                                 Layer Two: The Internet Applications
                    Paper & Office                                                                                   All companies/sectors            O&M
                                                              Infrastructure Indicator — Various 400
 600               Petrochemicals                             providers of software and services needed
                   Motor Vehicles                             to facilitate transactions on the Web. 300                                                     89
          Computing & Electronics                             Companies in Layer Two would include 200                                      77
 300                                                          firms like Oracle, Adobe, Scient, and                                66
                                                                                                               100       56
                                                              Netscape (to name a few).
   0                                                             Layer Three: The Internet Intermedi-                    97       138      175    216       259
   1998         1999         2000       2001    2002   2003   ary Indicator — Consists of various “pure                1999       2000     2001   2002      2003
                                                              play” providers including firms like Ya-

   10        On The Mhove

                                          Three Important
                                       Industry Events Set for
                                                      The Material Handling Industry of America (MHIA)
                                                           is sponsoring economic, marketing, and
                                                                 human resource conferences
                                                                    August 23-25, 2000.

  4Sight 2000
   MHIA will sponsor the 4Sight 2000 Eco-
nomic Outlook Conference August 24-25,
2000, at the Loews Hotel in Annapolis, MD.
The 4Sight Conference is specifically de-
signed for manufacturers, integrators, con-
sultants, and third-party logistics providers
of material handling equip-
ment, services, and
                                                     Mharcom and HRT Meetings to be Held in
technology. Atten-                                   Conjunction with 4Sight 2000
dees to benefit
from this confer-
ence include in-                                  Mharcom                                       HRT
dividuals re-                                        Directly before 4Sight 2000 from August       The MHIA Human Resource & Training
sponsible for                                     23-24, the MHIA Marketing Communica-          Forum (HRT) will also hold a conference in
business fore-                                    tions Forum (Mharcom) will hold a confer-     Annapolis August 24-25, 2000.
casting and plan-                                 ence and workshop.                               The conference is titled Total Compensa-
ning, as well as                                         The theme of the conference is Lock-   tion Management Strategies for the Mate-
strategic market Dr. Robert Genetski                            ing In The Loyalty With 1-to-   rial Handling Industry. It is designed for
planning.                                                          1 Marketing. This event      human resource and training professionals
   The two-day conference will kick off                              will combine a Mharcom     in the material handling industry who need a
with a luncheon keynote by Tom Spitale                                planning meeting with a   basic overview of compensation and bene-
of the Peppers & Rogers Group entitled                                 powerful presentation    fits issues. In this hands-on seminar, you’ll
Winning the 1-to-1 Future in the Material                              and workshop on          receive an introduction to the skills, knowl-
Handling & Logistics Industry. Dr.                                     branding, 1-to-1 mar-    edge, and tools required to develop a total
Robert Genetski, one of the nation’s pre-                             keting, and customer      compensation management strategy. The
mier interest rate forecasters and invest-                           relationship manage-       HRT Forum is honored to present a dy-
ment advisors, will provide a macroeconomic                        ment. The conference will    namic speaking duo of Suzanne Dyer-Gear
and financial outlook. The conference will                       feature a keynote and work-    and Gary Thornton.
also feature a series of expert economists who   Tom Spitale     shop by Tom Spitale from the      For more information, visit
will cover the economic outlook for automo-       renowned Peppers & Rogers Group.              hrt or contact Allan Howie at 704/676-1190
tive/transportation, retail, e-commerce,             For more information on the Mharcom        or e-mail
aerospace, food and beverage, the global          Meeting, visit or
economy, and industrial construction.             contact Carol Miller at 704/676-1190 or e-
   For more information on 4Sight 2000,           mail
visit or contact
Jennifer Resio at 704/676-1190 e-mail


          ProMat 2001...
All Roads Lead to Productivity City
             NA 2000 Exhibitors Reserve Space for
              ProMat® 2001 in Record Numbers!
          uring the second week of April,            ber of prospects in just four days,

D         2000, the exhibitor population of
          Productivity City soared. Enthused
by their successes at NA 2000, companies in
                                                     reducing the need for costly and
                                                     time-consuming field sales calls.
                                                     Studies show the average cost of
all kinds of material handling and logistics         closing a sale with a trade show
categories made ProMat 2001 a priority. As           contact is less than 38% of the cost incurred     Productivity City in February 2001, call MHIA
NA 2000 came to a close, 414 exhibitors had          through a field sales contact. Long-time ex-      Show Sales at 800/345-1815 or 704/676-1190.
reserved 82% of the 279,405 square feet of           hibitors also know that being at ProMat en-       More information, including on-line show reg-
space on the ProMat 2001 show floor.                 hances their brand recognition and puts them      istration is available on the ProMat 2001 Web
   With more than 290,000 square feet of dis-        in extremely good company.                        site at
plays, the upcoming 2001 MHIA-sponsored                 Exhibiting at the show is only the beginning
show represents an especially rich prospecting       of the many ways in which ProMat allows you
opportunity for exhibitors who offer any type        to reach excellent prospects. ProMat 2001 edu-
of material handling and logistics equipment,        cational forum sessions explain the benefits
system, or service. More than 40,000 prospects       and applications of the productivity solutions
from 80 countries will make this show the            found on the show floor. And exhibitors gain
largest and most comprehensive international         access to an attendee mailing list that is ex-
material handling and logistics trade event          tremely valuable to their pre- and post-show        (Answer from page 7)
ever held in the United States. Many of those        marketing efforts.                                  MHind Twister Solution
who have already reserved their space are vet-          More than ever, ProMat is truly an industry
eran exhibitors who have seen the advantages         event. There’s no better place to enhance your      Switch forklifts. The first forklift to
of ProMat participation firsthand.                   company’s credibility and image with the peo-       arrive will be the loser, making the
   Over the years, they’ve learned that ProMat       ple you most want to recognize and remember         driver’s original assigned forklift the
enables them to meet and qualify a vast num-         you. For more information about exhibiting in       winner.

      MHIA 2000 Annual Meeting                                                                            Fall Product Section & Council Meeting
                                                                                                       Combined With MHIA General Membership
                                                                                                       (Naples) Meeting.
                                                                                                          In 2000, Material Handling Industry of
                                                                                                       America (MHIA) will hold all Annual Meet-
                                                                                                       ing activities at one time and in one convenient
                                                                                                       location. The 2000 Annual Meeting will be
                                                                                                       held over the period of October 7-13, 2000, at
                                                                                                       the stunning Hyatt Regency, Lake Las Vegas
                                                                                                       Resort in Lake Las Vegas, NV.
                                                                                                          This meeting will include:
                                                                                                          MHIA Annual Meeting of Product Sections
                                   October 7-13, 2000                                                  & Councils — Product Section and Affiliated
                                                                                                       Trade Association meeting, attendance is lim-
                  Hyatt Regency, Lake Las Vegas Resort,                                                ited to members of those organizations and in-
                           Lake Las Vegas, NV                                                          vited guests.
                                                                                                          MHIA Annual General Membership
        When the right elements are brought together they can really make a splash. That’s why MHIA    Meeting — Formerly known as MHIA Mem-
     has brought two annual meetings together in one place, one week.                                  bership Meeting and Executive Conference
        This year, the MHIA Product Sections & Councils and the MHIA General Membership meetings       held in January in Naples, FL.
     will come together at the Hyatt Regency, Lake Las Vegas in October 2000. Watch for more news         If you will be attending the MHIA Annual
     about how this event can create some amazing chemistry in the material handling & logistics       Meeting, contact the hotel directly at 702/567-
     industry.                                                                                         1234, or visit Be
        For More Information, go to: or contact Victoria Wheeler at:             sure to indicate that you will be attending the
     704/676-1190 or e-mail                                                         MHIA Annual Meeting to receive special dis-
                                                                                                       counts on your hotel rates.

12     On The Mhove
                                                   ASSOCIATION OF PROFESSIONAL MATERIAL HANDLING CONSULTANTS

PRESIDENT’S MESSAGE                                                                                           Joint Effort to Develop Conveyor
Allen Kaiden                                                                                                  Practice Guideline Nears Completion
APMHC                                                                                                         By Don Benson, Chairperson
   With each meeting of
our members, the level of
                                                                                                              Approximately two years ago, the APMHC and the Conveyor
interest and participation
has grown. Recently, we                                                                                       Product Sections joined to develop a recognized set of Conveyor
held our spring forum in                                                                                      Practice Guidelines. This effort was spearheaded by APMHC
conjunction with the 2000                                                                                     members Don Benson and Howard Zollinger.
North American Material                                                      onveyors, like most material handling
Handling Show & Forum (NA 2000), and close to
75% of our members were present.
                                                                      C      systems, function well if we can properly
                                                                      describe the functions that we ask them to per-
                                                                                                                                       suppliers, in the hope of reducing the misun-
                                                                                                                                       derstandings that now occur. To date, several
                                                                                                                                       members from both organizations have gra-
  The value of membership in our organization is in-                  form. The key issue is often in developing a                     ciously contributed considerable time and ef-
creasing for many reasons. One is the growing inter-                  functional description of the material handling                  fort, to develop the “Practice Guidelines” in
action with the Material Handling Industry of Amer-                   requirements that all participants equally un-                   their current format.
ica (MHIA) product-specific groups. At our recent                     derstand.                                                           Prior to finalizing the “Practice Guidelines,”
meeting, representatives of the Logistics Execution                      To facilitate the process of developing a clear               members from both organizations will be seek-
Systems Association (LESA), formerly known as the
                                                                      lexicon of terms and provide a framework in                      ing public comment culminating in an open dis-
Warehouse Management Systems (WMS), met with
                                                                      which these could be used, the Conveyor Prod-                    cussion forum next February at ProMat 2001
us to discuss a joint project between APMHC mem-
                                                                      uct Section of Material Handling Industry                        (
bers and the LESA members. More discussion on the
                                                                      (MHIA) and the Association of Professional                          A key objective of the conveyor industry
project will be conducted at the MHIA Fall Meetings
in Las Vegas ( ).                                Material Handling Consultants (APMHC)                            was to develop a process which would allow
  Our joint project with the Conveyor Product Sec-                    jointly embarked on a program to develop a                       their members to propose design solutions be-
tion has evolved into a working document that will                    recognized set of “Conveyor Practice Guide-                      yond a baseline system which would meet both
be on-line and requesting user feedback upon                          lines” several years ago. These are intended to                  specified performance and safety require-
completion (following the Fall Meetings).                             be used as a voluntary, standard industry                        ments.
  As we open lines of communication between the                       framework for use by an end-user/owner pro-                         By May 30, 2000, the “Practice Guide-
consultants, the vendors, and ultimately the end-                     ject team in the creation of procurement speci-                  lines”will be posted on the MHI Web site, with
users, the entire materials handling community is                     fications to accompany a system request for                      a structure for receiving feedback. We invite
better served.                                                        quotation.                                                       your comments. If you have questions, please
  Most of us entered into the consulting business                        Once fully developed, APMHC intends to                        feel free to contact Don Benson at 510/482-
because we felt we had skill sets, knowledge, and                     provide the guidelines to consultants, users, and                3436 or e-mail
experience that were worthy enough to share with
others. Technology is changing the nature of how
we look at the world, and it is changing the busi-                                                                        ALL ABOUT US
ness environment. The players are also changing
as they adapt to the new world of the Internet and                          Organized in 1959 by several industry leaders who saw the need for
e-commerce.                                                               more reliable, capable, and professional services in the material handling
  As independent consultants, there is more and more                      consulting field, APMHC is a professional society composed of individual consultants.
competition daily. Recognizing this, we must stay on                        Its members promote and coordinate the exchange of ideas and information among the
top of ever-changing systems and technology.                              membership and encourage the improvement of analysis, synthesis, and installation training.
  Being a member of APMHC is helping us to do                             APMHC is committed to advancing the profession through the development of standards of
just that by providing opportunities for opening                          performance. We assist other groups in promoting materials handling, generally, and the
communications with all concerned in the practice                         consulting profession, specifically.
of material handling.                                                       Our members meet twice annually and are involved throughout the year in the develop-
  For more information about our organization,
                                                                          ment of working guidelines in conjunction with product-specific organizations.
please contact Bobbie Curtis, Executive Director,
                                                                            Interested in learning more about us or how you can join APMHC? Visit our Web site at
at 704/676-1190 or e-mail Also,
visit our Web site at

  President, ALLEN KAIDEN, Sigman/Kaiden Consultants, Inc., Hauppauge, NY 516/360-3925
  VP General Members, FRANK W. RENSHAW, P.E., Keough Consulting, Inc., North Palm Beach, FL 561/844-1200
  VP Associate Members, RICHARD WEITZ, Johnson & Johnson, Piscataway, NJ 908/562-3556                                                 ASSOCIATION OF PROFESSIONAL
  Secretary/Treasurer, DAVID LUTON, David Luton & Associates, Inc., Willowdale, ON, Canada 416/225-4703                               MATERIAL HANDLING CONSULTANTS
  Past President, TONY VENUTI, The Consulting Group, Lexington, MA 781/861-8650                                                       Please address any comments to:
  Executive Director, BOBBIE S. CURTIS, Material Handling Industry, 8720 Red Oak Blvd., Suite 201, Charlotte, NC 28217 704/676-1184   BOBBIE CURTIS, Editor
  Directors, ROBERT B. FOOTLIK, P.E., Footlik & Associates, Evanston, IL 708/441-5920
                                                                                                                                      8720 Red Oak Blvd., Suite 201, Charlotte, NC 28217-3992
             BILL GUIHER, P.E., Inflection Point, Inc., Greenbrier, TN 615/643-5678
             DONALD B. BENSON, P.E., Benson & Associates, Oakland, CA 510/482-3436                                          

SPRING 2000                                                                                                            Volume 01 / Issue 02

 Sal Fateen
 MHMS                                                                              Handling
    “Certification is a means we use to mea-
 sure one’s knowledge and accomplishments
 in their field of expertise and to offer them rec-
 ognition among their peers.”
    Over the years, the Material Handling and
                                                                              Bobbie Curtis, Executive Director
 Management Society (MHMS) has prided itself                                  MHMS
 in offering several educational means to enhance its members’ knowl-
 edge in the material handling field. Some of these means were in the
                                                                                Wayne Gretsky once said, “I skate to where the
 form of educational guides, learning systems, seminars, papers, arti-
                                                                                puck is going to be, not to where it is.”
 cles, and show participation.
    To reward and recognize the material handling professionals in our
                                                                                        ow does that relate to material handling
 industry, MHMS has offered two branches of certification: Profes-
 sional Certified in Material Handling (PCMH) and Professional Certified
                                                                                H       investments?
                                                                                 When you make an investment, are you thinking
 in Materials Management (PCMM).
                                                                              past its value or are you anticipating how valuable the investment will be
    Over the years, it was realized that the key contributors to our indus-
                                                                              to your organization in the future?
 try are practitioners with hands-on experience that are well versed in
                                                                                 History has shown us that most companies are like the old western
 the material handling field. For those with that kind of expertise, the
                                                                              movies...they are too busy “circling their wagons” to protect themselves.
 certification program has been revised and revitalized with a two-tier
                                                                              Instead of concentrating on the future of their business by achieving ex-
 certification program and revised exams to reflect the current trends
                                                                              cellence and anticipating what might lie ahead, they are short-term-ori-
 of the material handling industry.
                                                                              ented and assume that their investment may have a short life. They spin
    The newly created level of certification is Certified Associate in Ma-
                                                                              their wheels (chasing the puck around).
 terial Handling (CAMH). This level is attainable by experienced and
                                                                                 Organizations need to capitalize on all their investments in order to
 qualified people in our industry based on their practical experience
                                                                              satisfy new demands and continue to grow effectively. As a materials
 and longevity in the material handling field without the requirement of
                                                                              handling practitioner, your personal value to your organization will de-
 extensive preparation for the exam, provided they meet the qualifica-
                                                                              pend on your ability to “scout the future” and determine the future
 tion requirements.
                                                                              value of investments. Your professional growth within an organization
    Upon becoming a Certified Associate in Material Handling, a person
                                                                              will depend upon your ability to propose well-researched investments
 can then pursue the PCMM and PCMH certification by subscribing to
                                                                              using available tools. This is where the Materials Handling and Manage-
 any of the courses offered or by using the study guides and reference
                                                                              ment Society (MHMS) can help you.
 library to achieve the degree of knowledge required for certification.
                                                                                 MHMS, in conjunction with the Material Handling Institute, now of-
    With the changing business trends, our industry is no different: com-
                                                                              fers an interactive CD-ROM entitled “Economic Justification of Mate-
 panies acquiring companies; streamlining and downsizing are here to
                                                                              rial Handling Systems.” Developed by John S. Usher, Ph.D., P.E., the
 stay; the economy may force companies out of business. Qualified and
                                                                              University of Louisville, the CD-ROM covers:
 nonqualified people may be seeking employment for one of these rea-
                                                                                 • Considerations for Justifying Material Handling Systems
 sons or seeking better opportunities for themselves and their families.
                                                                                 • Time Value of Money Concepts
 Companies are looking for qualified people to fill the few positions that
                                                                                 • A Seven-Step Approach for Justifying Material Handling Systems
 may be available, and who better than a person being recognized by
                                                                                 • Comparison of Alternatives Using NPW and IRR
 the industry as a certified professional in their field?
                                                                                 • Dealing with Depreciation, Taxes, and Inflation
    In a bold move, the L.A. chapter of MHMS voted to have all 13 mem-
                                                                                 • Activity-Based Costing
 bers of the Board of Directors become certified. They applied for the
                                                                                 Each of the above sections is followed with an interactive exam, which
 test as one unit, and during an extended board meeting, they all took
                                                                              will direct you back to the answer within the text if you select the incor-
 the exam, which was proctored by both Steve Halpern and myself. The
                                                                              rect response.
 board is hoping that this show of interest will filter down to all members
                                                                                 MHMS members may find this CD-ROM especially helpful in prepa-
 and encourage them to get certified.
                                                                              ration for their certification as a Certified Associate in Materials Han-
    If you are in sales, management, materials management, mainte-
                                                                              dling (CAMH) and Professional Certified in Materials Handling
 nance, or any other material handling function and think you have the
 experience and expertise in this field, become a recognized profes-
                                                                                 Interested in obtaining a copy of the CD-ROM? Contact Ali Barker
 sional. It’s never too late to make the first step toward certification.
                                                                              at MHMS, 704/676-1183. The cost is $175.00 for MHMS members and
                                                                              $195.00 for nonmembers.

14   MHMS Outlook
                                                         Why You
                                                         Can Trust
Get More Out of
  Your MHMS
                                                         a Certified
                                                                  hat do many horse breeders, oil

INVOLVED! W                                                       chemists, and school principals
                                                                  have in common? They have all
                                                     been certified as experts at what they do. You
                                                     probably know many people who are certified
              embers are the lifeblood of asso-

M             ciations, and this holds true with
              Materials Handling and Manage-
ment Society (MHMS). Associations exist to
                                                     in their professions. The accountant living next
                                                     door, the realtor who sold you your house, and
                                                     your dentist’s assistant have all been tested to
                                                     prove their knowledge and ability on the job,
address their members’ top challenges, such
as the exciting promise of technology for the
                                                     and to acquire their certification.                      Chapter Presidents
                                                        Associations are the leading providers of
industry. Who knows these issues better than
                                                     certification programs. Their certification tests    Atlanta
you? That is why volunteering your knowl-
                                                     can be so rigorous that candidates form study         Greg Barnes • 770/793-0683
edge and experience to the association is so
                                                     groups to pass them. In addition to proving          Boston
important and gratifying. There are several
                                                     their professional mettle, applicants must often      Bob Liptrot • 508/740-6660
ways for you to get involved both locally and
                                                     follow a code of ethics and continue their edu-
at the national level with MHMS:
                                                     cation, through the association’s seminars and       Charlotte
• Serve on a committee or task force. Here
                                                     conventions, to maintain their certifications.        Bobbie Curtis • 704/676-1183
   you can join with others to direct the associa-
                                                        Materials Handling and Management Soci-           Chicagoland
   tion’s efforts, choose award recipients, and
                                                     ety (MHMS) is the source for certification in         Jim Schultz • 847/535-2058
   plan continuing education topics for upcom-
                                                     the materials handling profession. Over 25 ap-
   ing luncheons and conventions.                                                                         Delaware Valley
                                                     plications have been submitted for the Certi-
• Speak at an educational session on a topic in                                                            Paul O’Connell • 609/667-4461
                                                     fied Associate in Materials Handling (CAMH)
   which you have expertise.
                                                     since January 2000. Once most applicants have        Indianapolis
• Write articles for the association’s newslet-
                                                     attained their CAMH credentials, they apply            Mike Jones • 317/247-9737
   ter, magazine, or journal.
                                                     for the Professional Certified in Materials
• Serve on the Board of Directors and help                                                                Kansas City
                                                     Handling (PCMH).
   guide the policies and long-term direction of                                                           Jerry Foulds • 816/997-2651
                                                        MHMS provides a wealth of resources, as a
   the association.
                                                     part of the body of knowledge, to prepare ap-        Los Angeles
   By volunteering for the association, you in-
                                                     plicants for professional certification in materi-     Tom Solomonson • 714/572-0871
crease your exposure within the field, and you
                                                     als handling.
contribute to the industry’s overall advance-                                                             Tri-State/Cincinnati
                                                        Don’t be left out. Learn more about how
ment. Most important, you make the associa-                                                                 Jim Wachter • 513/745-9401
                                                     you can become certified.
tion yours.
                                                     Visit our Web site at                                Toronto
   Find out more ways to volunteer by
                                           ,                                     Marc Spagnuolo • 905/660-5434
contacting the local chapter nearest you. The
MHMS local chapters are listed to the right                                                               Western Michigan/Grand Rapids
                                                     or call Ali Barker at
on this page. Send your suggestions to                                                                     Charles VandenBosch • 616/942-9101

                        MHMS programs and member resources are available on our
                 Web site at The site is updated daily, so check it out.
                           If you can’t find what you are looking for, give us a call!
                MHMS Executive Director, Bobbie Curtis, or call 704/676-1183.


                                                        continued from page 8

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