Buy it online

While slow to embrace transactions on the Web, the materials handling industry is moving in that direction step by step.

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

A FEW MONTHS AGO, Rick Bushnell, president of Quad II, was invited to brief a group of warehouse management professionals on the impact of the Internet on order fulfillment.

To prepare for the presentation, Bushnell searched the Internet to see how leading materials handling firms were dealing with those issues on their Web sites.

"I looked for products I could order online, like conveyors and carousels," says Bushnell, who manages InsightU (www.insightu.org ), a Web site that provides educational resources on data capture and supply chain management. "What I found was a wealth of information, but not a wealth of product."

Bushnell's experience sums up the materials handling industry online today.

There is clearly a wealth of in-depth product and system information out there. And it's not all coming from manufacturers and distributors. At sites like www.indtrk.org, the Web site for the Industrial Truck Association, you can learn everything you ever wanted to know about lift trucks and more. Ditto for www.mhia.org , home of Material Handling Industry of America, and a go-to site for information about materials handling systems.

Buying online from members of those associations is another matter. That, however, is changing. As materials handling users become more comfortable with the Internet as a place to do business, materials handling equipment and systems providers are scouring their catalogs for the products they can sell online.

The challenges of e-commerce

There are four reasons the materials handling industry has been slow to embrace transactions on the Web.

Distributors are a major channel. They consult with end users before the sale and provide service after installation. Manufacturers that use distributors extensively don't want to bite the hand that feeds them by setting up what could be seen as a competing channel. There are, however, ways to work around this.

Last November, Hytrol Conveyors (www.hytrol.com) began rolling out an e-commerce initiative that directs users to the distributor nearest to them. A wide selection of out of the crate conveyors and parts is available. Shoppers can pick a packaged solution or build a custom piece of equipment. Presto Lifts, Inc. (www.prestolifts.com ), on the other hand, encourages its distributors (not end users) to order online from Presto's "always-in-stock" product list.

Materials handling systems are customized solutions. "You can't pull an overhead crane off the shelf and ship it in a box like a book or a DVD," says Dave Reh, president of Gorbel (www.gorbel.com ), a manufacturer of overhead lifts, and a member of the board of governors of MHIA. "You still need someone to sort through the different options and integrate that solution into the system." This is one issue that is proving to be a major stumbling block for the online buying initiatives at many materials handling systems suppliers.

Many suppliers simply don't have the information technology or financial resources to create an effective online system. That, too, is changing. A consortium of manufacturers and distributors created MaterialNetwork.com (www.materialnetwork.com ), an electronic marketplace featuring a catalog of 200,000 products covering every segment of the industry. Registered users can purchase directly from the catalog, set up online relationships with their existing suppliers, or put out a request for quote (RFQ) for a negotiated price.

In the coming months, B2BMaterialsHandling.com (www.b2bmh.com ) will provide the integration between manufacturers, distributors, and materials handling customers who want to do business electronically.

Finally, many materials handling customers don't have e-procurement systems and related policies in place. As a result, just because suppliers build sites, doesn't mean customers are either ready or authorized to buy online.

"When we surveyed our customers, we were surprised by how many weren't set up for e-procurement," says Matthew Kramer, senior director for Peak Direct, the online arm of Peak Technologies, a value added reseller in the ADC market (www.peakdirect.com/esyte ). "They do want order status, inventory visibility, and activity reports online. But placing orders online was a secondary concern."

In response, Peak Direct rolled out product and customer service information first. Then they offered customers online access to commodity items like bar code printers and printing supplies. In the future, Peak Direct will introduce a configurator that will enable users to build a custom solution with off-the-shelf printing, scanning, and even software components.

Others in the industry are also taking steps to sell everything from racks and conveyor to used forklifts to pallets to prefabricated warehouses online. Here's where some of the action is.

From conveyors to lift trucks

Conveyors, automatic guided vehicles (AGVs), and sortation systems are at the heart of some of the latest moves to sell materials handling equipment online.

Rapistan (www.rapistan.com ) recently initiated a parts online program to service it's custom-designed solutions. Once enrolled on the site, users can get online quotes for replacement parts, stock availability, and place orders for parts that will be shipped within 48 hours.

Want to buy or sell a used AGVS, carousel, or palletizer? HK Systems recently unveiled HK Reseller.com (www.hkreseller.com ), an online service that allows people to sell components they no longer need, just like on eBay. Sellers pay a small fee to post their products, plus a commission on the sale. There is no fee for buyers to participate.

Soon, HK Systems (www.hksystems.com ) will offer an online store for replacement parts that will be open for business 24 hours a day, 7 days a week.

New lift trucks aren't often offered for sale online, but a wide variety of support services are available.

At LiftTruck.com (www.lifttruck.com ), users can purchase safety equipment and training manuals and videos.

RapidPartsOnline.com hosts two Web sites for industrial lift truck replacement parts. PROMATCHONLINE.com (www.promatchonline.com) provides an online store for parts and dealer listings for Caterpillar equipment, while MASTERSOURCEONLINE.com (www.mastersourceonline.com ) services Mitsubishi users. Both sites offer a free, in-depth search engine. Users can search by part number, or by the make and model of the truck. Orders received by 6 PM EST are shipped out that day.

Want to buy a used lift truck, crane, or other industrial machine? Check out the selection at buyaliftruck.com (www.buyaliftruck.com ), where prices range from $1,000 to $125,000.

From racks and scanners to pallets

Commodity items, like racks and bar code scanners, lend themselves easily to online transactions, and a number of players have entered the field.

For bar coding and scanning, Symbol Technologies (www.symbol.com ) sells handheld scanning devices, mobile computers, and even wireless access points through its online store.

WarehouseHog.com (www.warehousehog.com ) offers an extensive product mix with a specialization in racks and related components, shelving, plastic pallets, and all types of pallet containers. What sets the site apart is competitive bidding. Buyers enter an RFQ and within hours receive back three quotes based on the buyer's criteria, location, and delivery time.

MovingBelt.com (www.movingbelt.com ) is an electronic marketplace with a catalog for everything from lift truck batteries to powered lift stations. Need information about complex systems or obscure products? Detail your requirements, and MovingBelt.com will do the research for you. A request for proposal (RFP) function allows buyers to build a request for a proposal: vendors can then bid on part or all of the request.

Along with an extensive product catalog, eHandling.com (www.ehandling.com ) provides support and automation centers with tips on designing and implementing materials handling solutions.

SJF Material Handling (www.sjf.com ), a distributor in the materials handling field, covers the basics from carton flow and pallet racks to stretchwrap equipment at its on-line store. SJF has also added a complete online resource library of drawings and information, plus an electronic bulletin board where users can exchange ideas. Trained materials handling specialists are available online for each product.

Used, new, plastic, and Euro pallets are bought, sold, and traded at Pallet-Mall.com (www.pallet-mall.com ). Along with a library of articles on pallet design and load unitization, buyers and sellers come together on the site's message boards.

EqualFooting.com (www.equalfooting.com ) offers industrial MRO supplies and business services like financing, leasing and transportation, to small and medium enterprises.

Those sites all serve the needs of warehouses and distribution centers. At BuildingsDirect.com (www.buildingsdirect.com ), you can purchase a prefabricated and pre-engineered warehouse, out building, or storage facility for hazardous waste.

Heavy metal

Getting access to timely information about lift truck sale prices is critical especially for companies with a fleet of lift trucks to manage.

Several Internet sites are addressing that need.

The first two are sponsored by Equipment Data Associates, a Randall Publishing company.

The Lift Truck Evaluator (www.theevaluator.com ) is an online used equipment value guide, listing information on numerous manufacturers and models going back 10 years.

Like the Blue Book for automobiles, the Evaluator allows a fleet manager, banker, or insurance company to configure a specific lift truck based on options, condition, and type of usage. With that information, the program will generate a high and low price and an estimated residual value percentage to determine how the product maintains its value over time. Users can do a side-by-side comparison of competing trucks to decide which is best for their operation.

Buy It Online Directory

Is our list complete? Probably not. The Web is a dynamic and evolving world of commerce, with new sites emerging every day.

That's why Modern Materials Handling is building the first directory of online suppliers for the materials handling industry. These are sites where readers can purchase equipment, materials, services, and important information electronically.