News From ProMat 2001

By Staff -- Modern Materials Handling, 3/1/2001

Industry outlook: Slower, but solid growth

What lies ahead for the materials handling industry after the 1990s? Slower but solid growth, reports John Nofsinger, chief executive officer, Material Handling Industry.

"Year 2001 bookings are expected to increase slightly from last year," Nofsinger predicted at ProMat 2001. "That would put unit growth in the 4-to-6% range for many material handling technologies, or slightly stronger than the economy as a whole."

"We believe the market for material handling will bottom out in the fourth quarter of 2001, without a recession in the classical sense," Nofsinger concluded. "Inventories may rise temporarily, but cost pressures will keep them under control, and productivity will continue upward."

Regardless of form, e-commerce is here to stay

In spite of many dot com deaths, most supply chain professionals will readily admit that e-commerce is here to stay. What form it takes remains to be seen, but it has affected the way everyone does business.

"For established companies, it means they must adapt or wither. For dot coms, it means they must deliver or die," says Ann Drake, CEO of DCS Logistics. Drake was one of the presenters at ProMat's executive symposium-e-fulfillment: The logistics behind e-commerce.

Motorola, for example, is using the Internet to augment its own fulfillment channels. The company mapped its entire supply chain to look at cost factors and inventory levels. Motorola can now ship directly to their customer's retail stores, as well as process direct-to-consumer orders that its retail customers send to them using electronic data interchange.

Dell takes 50% of its orders online

A standing room only crowd heard just how important fulfillment is to e-commerce success at ProMat's executive symposium-e-fulfillment: The logistics behind e-commerce.

"New jobs are actually being created with titles such as 'e-supply chain manager,'" says Larry Brown of Dell Computer Corp. Brown shared how his firm is close to receiving 50% of its orders online. Besides receiving and processing orders, Dell is leveraging the Internet to connect to its suppliers. This standardizes supply order processes, provides complete visibility to parts shortages, and helps to move Dell to a remarkable 3-hour inventory window.

Additionally, Dell uses the Internet to schedule its production based on customer orders. "That is crucial when you are in the mass customization business," says Brown.

CEMA expands membership base

The Conveyor Equipment Manufacturers Association (CEMA) announced at ProMat 2001 the expansion of its regular membership to include equipment manufacturers throughout North America. Previously, membership was limited to only U.S. manufacturers.

The organization has also created a new technical membership category. It is offered to non-manufacturing engineers and consultants who provide services to manufacturers and conveyor users.

Hunter is materials handling manager of the year

Steven Hunter, manager of operations logistics for Philip Morris U.S.A., Richmond, Va., was named materials handling manger of the year by the Materials Handling and Management Society (MHMS) at an awards dinner at ProMat 2001 last month.

Hunter and Philip Morris were chosen for the redesign of a state-of-the-art shipping system. The company replaced an existing conveyor and control system, automated palletizers, an AGV pallet delivery system, and miles of automated conveyor.

"All in all, it is a complex system reflecting the best of today's materials handling technology," said Flamer.