Storage strategies and other ideas from NA 98
The recent North American Material Handling Show and Forum helped attendees find new productivity solutions.
By Staff -- Modern Materials Handling, 6/1/1998
DETROIT-Storage racks and related equipment are becoming a more dynamic part of the supply chain. That thought was among comments made by A. L. Leffler, CEO of the Material Handling Industry of America, at a press conference during NA 98, the North American Material Handling Show and Forum, held here at the end of March.The supply chain is not new, Leffler noted, but for too many years the material handling industry focused primarily on what happened between the four walls of a warehouse or factory.
"We now need to support the efforts of companies to reduce the time that materials spend in the entire supply chain. We can change the time period that inventory remains idle at various stages in manufacturing, warehousing, and distribution," he explained, adding that materials handling will be a big part of productivity solutions within the supply chain.
An example of the trends expressed by Leffler could be found in the host city for the show, Detroit and its environs, where a big demand is being seen for modern warehouse space. Unlike traditional warehouses for long-term storage, the new generation being built here and elsewhere in the country is for sorting and distribution. Goods remain in most warehouses for only a few days before being shipped.
The boom in warehouse building in Detroit can be linked to several factors, including globalization of business, whereby the big three automakers need warehouse distribution centers for their parts to be sent overseas to assembly plants in Europe, South America, and Asia. Also, there has been an influx of major retailers needing space in the area.
New rack standards
At another press conference at the show, the Rack Manufacturers Institute (RMI) announced a sweeping new specification for the design, testing, and utilization of industrial steel storage racks.
RMI president George W. Prest, of Prest Rack, Inc., noted that the new document, RMI '97, has been dramatically modified from earlier editions to allow for complete seismic design, amend installation and application considerations, and standardize design and testing methods and defaults.
Prest noted that rack manufacturers who are members of RMI have agreed to comply with RMI '97 as a condition of membership in the organization. "The guiding objective has been to enhance rack safety and fitness," he added.
Crossdocking cuts costs
One activity not requiring very much in the way of storage racks is crossdocking, a concept discussed in one of the forum sessions held in conjunction with the show. Crossdocking involves receiving goods and shipping them immediately to customers, bypassing storage and its attendant costs, as well as cutting the amount of time goods spend in transit.
On the surface, crossdocking appears so simple one would naturally assume it can be implemented with little effort. "Nothing is farther from the truth," said speaker Burt Shaffer, Tompkins Associates. "Most crossdocking failures occur because there is insufficient understanding of basic requirements, and a lack of adequate planning."
Show and forum attendees can order forum papers from the MHIA website, using a special PIN number. Others can obtain information about ordering papers from the web by phoning MHIA at 704-676-1190, or by E-mail: cdalton@MHIA.org.
Products introduced by NA 98 exhibitors at press conferences and special meetings during the Detroit show are covered in a feature report in another section in this issue, starting on p. 42.
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