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
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
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-
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.
www.mhia.org/e-Mhove 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
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 RKulwiec@aol.com.
OSHA and Ergonomics:
HERE WE GO AGAIN!
ponents to address
CORNER ergonomic health.
First, it provides an
Dr. Richard Lindeke educational “pack”
University of Minnesota-Duluth
to help develop er-
gonomics training at
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
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 www.mhia.org/mhiashowpro. 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 email@example.com.
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 www.mhia.org/mharcom 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 firstname.lastname@example.org.
• 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.
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- www.mhia.org/e-Mhove
Remember the Metric MHIA
IT’S STILL Recruitment
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
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- (http://www.nibs.org/cmchome.htm). 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 ts.nist.gov/ts/htdocs/200/202/mpo_home.htm) 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: email@example.com. 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 firstname.lastname@example.org.
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 www.mhia.org/na2000 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 email@example.com or Dick Ward truck driver for help. After hearing
However, the process for arriving at a con- firstname.lastname@example.org 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
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
Enlighten.net 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 www.mhia.org/e-mhove). 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—www.mhia.org. 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
www.mhia.org 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 www.mhia.org 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 www.mhia.org. 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-
www.mhia.org to find the information that tation of our highly successful material han- 1190 or e-mail email@example.com.
they are seeking, quickly and easily. dling territory planning and mapping software Stay tuned to www.mhia.org!
U.S. B2B Evolution
By John B. Nofsinger, CEO
Material Handling Industry of America
LEVEL GROWTH Q1-99 vs. Q1-98
e have all seen the figures, like
W Chart 1 below, showing the in-
credible growth projections for
business-to-business (B2B) electronic com-
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.
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, Amazon.com, American Airlines, and
thorough understanding of this expected vari- The Street.com (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
Heavy Industries serving as Web/e-commerce enablers.
Aerospace Companies in Layer One would include Chart 3
Pharmaceuticals Internet Infrastructure and Related Operations
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
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
Industry Events Set for
AUGUST IN ANNAPOLIS
The Material Handling Industry of America (MHIA)
is sponsoring economic, marketing, and
human resource conferences
August 23-25, 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 www.mhia.org/
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 firstname.lastname@example.org.
aerospace, food and beverage, the global Meeting, visit www.mhia.org/mharcom or
economy, and industrial construction. contact Carol Miller at 704/676-1190 or e-
For more information on 4Sight 2000, mail email@example.com.
visit www.mhia.org/4sight or contact
Jennifer Resio at 704/676-1190 e-mail
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 www.mhia.org/promat2001.
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
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 www.lakelasvegas.hyatt.com. Be
For More Information, go to: www.mhia.org/fall2000 or contact Victoria Wheeler at: sure to indicate that you will be attending the
704/676-1190 or e-mail firstname.lastname@example.org. 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 (www.mhia.org/promat2001).
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 (www.mhia.org/fall2000 ). 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 email@example.com.
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 firstname.lastname@example.org. Also,
visit our Web site at www.mhia.org/apmhc.
APMHC OFFICERS & DIRECTORS
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 www.mhia.org/apmhc
SPRING 2000 Volume 01 / Issue 02
“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
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
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
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
Get More Out of
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
guide the policies and long-term direction of Jerry Foulds • 816/997-2651
MHMS provides a wealth of resources, as a
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
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.
Visit our Web site at Toronto
Find out more ways to volunteer by
www.mhia.org/mhms, 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 www.mhia.org/mhms. 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, email@example.com or call 704/676-1183.
continued from page 8
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