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The latest news from ProMat 2005

By Staff -- Modern Materials Handling, 2/1/2005


Keeping loads packed tight

Phil Carlson, senior director of transportation at Kraft Foods, spearheaded his company’s attempt at creating a standard for loading pallets on trailers.

Working with Kraft, ITW Shippers, a load securement technology company, provided solutions for load shifts by using air bags to create bulkheads. Kraft is also now using a “pinwheel” set-up for the loads.
Pinwheeling is defined by placing one pallet in the trailer and adding the next pallet sideways, creating less voids than the traditional even column packing. Once all pallets are added to the trailer, a final airbag is installed at the end of the load. Carlson suggested that Kraft has seen an unofficial drop in in-transit damage of about 70%.

Kraft has put together a training video that explains how these solutions work. The informational video has been made available to the industry ($5 for members, $10 for non-members) through the Grocery Manufacturers of America (www.gmabrands.com).

Transitioning outsourced operations

SynTime Supply Chain International Co. LTD is helping American companies make the daunting transition to outsourcing in China.

SynTime guides its clients by establishing manufacturing operations in China while also serving as a cultural liaison between U.S. corporate partners and Chinese officials. “Many U.S. companies have had bad experiences in China, as a result of poor quality assurance, delays in production, cultural and language issues, incompatible technology modules and general lack of China expertise,” said Thomas Chin, international director of SynTime. “SynTime’s core competency is to educate western companies, as well as to be their business partner in executing their China plans to meet their supply chain and overall business objectives.” 
  
Edward Zhu, SynTime’s chief executive officer explained that along with outsourcing savings, Syntime can aid American companies producing goods in China to penetrate the expanding Chinese market—without charging Chinese consumers the 45% import tax on goods shipped from the United States.


Duty free in Mexico

Doing business in Mexico just got simpler and less expensive.

That was the message from Rodolfo Torres Herrera, director, integrated logistics center, for Logistik Free Trade Zone, a recently-opened 1,300 acre industrial park located in San Luis Potosi, Mexico.

Last year, the Mexican Customs Administration created a new classification for installations that receive merchandise from outside Mexico. Companies operating in the new Strategic Free Trade Zones are exempt from paying import, income, or value-added  taxes while their product remains inside the zone.

What’s more, product imported into Mexico for processing or final assembly can be shipped out again to another country without paying taxes if the work is done in the Free Trade Zone. 

Logistik Free Trade Zone is the first company authorized by the Mexican Customs Service to construct a Strategic Free Trade Zone under the new act, Torres Herrera said.


Dell touts motor driven roller conveyor

Motor driven roller conveyor (MDR) may carry a higher initial price tag compared to traditional line shaft conveyors. But in the right application, the equipment can deliver significant cost savings over time, according to Michael Graham, a senior process reliability engineer for Dell Computer. 

 “If you look at the initial cost, MDR is about 10% more than competing technologies, including the implementation time,” Graham said. “But when you look at the savings in maintenance costs, power consumption, and the flexibility to easily reconfigure the conveyor, we can see a net return on investment in just 3 years.”

As an example, using MDR, Dell can realize annual maintenance savings of $348,000 for every 15,000 feet of conveyor, according to Graham’s calculations.

 

Special events that were held at ProMat 2005

* A major attraction during ProMat, the RFID Solution Center offered attendees insight into the cutting-edge technology. The Center featured literature and video instruction on recent innovation and company action.

* With representatives from over 80 countries in attendance at this year’s ProMat, the International Visitors Center saw unprecedented visibility. The Center included translators, meeting rooms and trade experts from the U.S. Department of Commerce.

* For the eighth time, ProMat has participated in the International Buyer Program, sponsored by the U.S. Department of Commerce. The buyer program helps small- and medium-sized U.S. businesses export their products and services to foreign nations.

* The United States military sent a delegation to ProMat in search of advice for their material handling queries. Allan Howie, MHIA director of training, provided tips for military DCs and offered his services for further instruction.

 

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