The author reviews the progress of materials handling techniques over the past quarter century and projects today's concepts against the requirements of the future, concluding with his evaluations of the changes that will take place in the years ahead.Industrial Organization,

Johnson, Glen R., Jr.

English

Research Papers in Economics

Tomorrow is today
Contributed b~yGLEN R, JOHNSON, JR.
The author reviews the progress of materials
handling techniques over the past quarter
century and proiects today’s concepts against
the requirements of the future, concluding
with his evaluations of the changes that will take
place in the years ahead,
The Decades of Pvogress
As I look back over a quarter of a century experience
in material handling and a close association with food
manufacturers and distributors and their problems, I can
see definite milestones of progress.
The decade of the 1940’s was definitely one of
“i14echanization” within the food industry, and if I may
dwell on that period for just a moment, it is basic to
the main topic of the discussion. Just preceding the
1940’s, a few major food processors were experimenting
with unit load handling and storage concepts, and some
distributors – you could count them on your fingers –
were using the unit load technique in their warehouses.
The material handling logistics lessons learned during
World War II were rapidly applied by the wholesale
grocers during the late 40’s, Seven significant events of
that era continue to exert their influence on food distribu-
tion.
1. Adoption of the fork truck-pallet unit load method of
handling.
2. Standardization in 1949 on two palIet sizes as indus-
try standards – 32” x 40” and 40” x 48” – the first
dustry to do SO.
3. Development of common measuring tools to gauge
material handling efficiency; such as: tons per man
hour (TPMH), pieces per man hour (PPMH).
4. Design and construction of distribution rather than
being a storage medium,
5. Acceptance of a “fast mover – slow mover” philosophy
of item location in relation to warehouse facilities.
6. Development of a “slot system” for stock location in a
warehouse.
7. The adoption of mechanical bookkeeping machines –
punch card – for ordering, invoicing, record keeping
and data retrieval functions.
The food industry is indebted to the foresight of those
innovators of that decade.
The decade of the 1950’s was one of “Equipment Spe-
cialization’’—under the floor towveyors, narrow aisle fork
trucks, remote control and custom designed order picking
towing tractors, adjustable pallet racks, flow through con-
veyors, automatic palletizers, adjustable and power actu-
ated dock boards, free lift masts on fork trucks — to name
SEPTEMBEB 71/f)Uge 22
a few of the innovations of that period. The decade of the
1960’s has become one of ‘<Unit Load Distribution” with-
in the food industry. The implementation of this concept
long practiced within automotive circles was an inevitable
step for the grocery manufacturers and food distributors.
The principle of shipping in unit load modules had been
a dormant potential for many years. A shipment of
flour on customer supplied pallets by rail car across town
from Pillsbury Mills to Super Valu Stores, Minneapolis,
Minnesota in 1945 was the first I have knowledge of em-
ploying a common carrier, While it was a humble begin-
ning which continued as a standard practice, it foretold
of things to come. Consider these things also. The pul-
pac slip sheet method of handling was invented in 1947
when we were trying to solve a unit load shipping prob-
lem for Kellogg Company. It was employed by some food
processors by 1949, but its potential as a palletless distri-
bution method was not exploited until recent years. The
same holds true for palletless carton clamps which came
on the scene in 1952 following initial squeeze clamp
development efforts in 1941 and 1945. Their potential as a
distribution tool was not tapped until the early 60’s, Thus,
while great strides have been made in the last several
years – over 70 manufacturers shipping their major prod-
uct lines in unit load form — progress has not been with-
out problems.
A major stumbling block has been non-standardization
of methods among manufacturers. Each has been employ-
ing the method he deems for his operation and one he
GLEN R. JOHNSOX, JR. k Manager, Food
Industry Major accounts, Clark Equip-
ment Company, Battle Creek, Michi-
gan, A graduate of Ohio State Univer-
sity, he is the holder of three materials
handling patents. He has served the
U.S. Department of Commerce as lec-
turer at the Cargo and Materials Han-
dling Seminar at the U.S. Trade Cen-
ter in Bangkok, Thailand, and as tech-
nical advisor to the U.S. delegation to
a United lNation’s Economic Commis-
sion for Asia and the Far East Con-
ference at Singapove. He is author of
many papers and textbook sections,
and is a member of the Na?ional Man-
agement Association, International
Material Management Society, among
others. He is presently chairman of
the American National Standards In-
stitute, MH-1 Pallet Standards Com-
mittee.
JOURNAL OF FOOD DKWIUBUTION RESEARCHhas promoted to his customers. The food distributor, thus,
has had to equip himself with all the handling tools to
take advantage of all these benefits offered by the ship-
pers – carton clamp trucks, pul-pac push-pull slip sheet
attachments, chisel plates, chisel forks, multi-tine grocery
forks, pallet forks and side shifters. It has required a siz-
able money investment for equipment to handle the
multiplicity of unit load forms, or else the distributor has
had to use manual unloading and reunitizing methods to
interface the product into his system. The equipment man-
ufacturers have not kept pace with the requirements, al-
though progress had been made from permanently mount-
ed attachments and devices on their lift trucks to a
“quick change”, version, requiring some 20 or 30 minutes
to remove and another 20 to 30 minutes to put on an-
other, using hand tools. However, the equipment sup-
pliers’ definition of quick change was different from that
of the user, and the situation may have remained status
quo for several more years if one grocery manufacturer
had not defined “quick change” attachments as ones which
could be exchanged in less than two minutes — without
hand tools. In future years we probablv will refer to
1967-68 as the turning point for unit load distribution.
We now are able to supply hydraulic attachments for
fork lift trucks which can be exchanged with each other
using hand tools and do it in less than two minutes —
and it does not require an exceptionally skilled lift truck
operator. This means that a fork side shifter attachment
can be taken off and replaced with a carton clamp or
pul-pac push-pull slip sheet or rotating clamp or multi
fork pul-pac – any device with either a single or dual
hydraulic motion. It is also possible – using a kit – to
modify existing late model trucks and attachments for the
two minutes or less quick change feature. These new and
very significant developments were introduced to the trade
at the material handling show in Cincinnati, Ohio, Oc-
tober 17 - 19, 1967 installations since then have been
changing devices in less than one minute. Food manu-
facturers (and most important for all food distributors)
can now ship, load and unload any unit load form, whether
it be on pallets, on slip sheets, palletless clamp loads,
special unit load packs, etc. One lift truck — with several
devices – can now meet many loading or unloading situa-
tions, I believe this will become one of the most significant
events for the food industry. These attachments — fork
side shifter, carton clamps — have been operating in
General Foods Corporation, Youngstown, Ohio distribu-
tion center for almost a year and have met all operating
requirements. Using high performance, 36 volt, SCR con-
trolled electric trucks and quick change attachments they
have increased storage capacity and handling efficiency
over their previous LPG powered trucks and pallets.
Material Handling for Tomorrow
Although none of us can foretell precisely what will
happen tomorrow or the coming 70’s, we will continue
to have two things that contribute immensely to our des-
tiny . . . People and Time. People will continue to create
and also to solve problems: people will operate correctly
as well as real-treat equipment; people will think as
well as taking thoughtless action; people will not lose the
intelligence race to computers but will continue to tell
these electronic marvels what to do. How well we use
human resources will be our barometer of progress.
Time, on the other hand, is the raw material of every-
thing. Let me repeat that . . . Time is the Raw Material
for Everything, All activities, events, happenings are re-
lated to time; performance, efficiency, speed are measured
by time. In the 70’s there will continue to be earth time of
24 hours a day, 365 % days per year. How well we em-
ploy time – the constant factor – will determine the ef-
fectiveness of our progress. Management of people and
time will continue to be a challenge, as it has always been,
to us. Material handling will be a major supporting func-
tion for the total distribution system. I predict that the
decade of the 1970’s will be one of total distribution in
which we will see the fulfillment of the “Box Within a
Box Within a Box’’module concept brought to fruition in
moving food products from grower to customer — yes
and perhaps from “Grower to Skiller” may become a real-
ity. This concept proposes initial packaging of the food
product in a container which will be used for its prepara-
tion by the consumer – similar to the frozen TV dinners,
pastries, etc. . . , but it will be done earlier in the dis-
tribution cycle.
Our present distribution cycle from grower to processor
to manufacturer to wholesaler to distributor to retailer re-
quires 16 separate material handling and 13 transportation
functions. We have not done too badly from processor to
manufacturers to wholesaler (and within those facilities),
but our material handling efforts at the grower and retailer
levels are most costly processes. It is in these areas that we
must seek cost saving opportunities by more efficient handl-
ing techniques, but their methods must interface with the
rest in the distribution chain to be effective.
The food industry presently accounts for 17% to 18%
of total unit sales of mobile variable path material handing
equipment. We expect this pattern will remain and pos-
sibly increase. Overall, we believe there will be a 50%
increase in demand for all material handling equipment in
the next ten years – from $1.6 billion to $2.4 billion. The
fork truck will become more sophisticated and will be
complemented by new types of handling equipment and
load positioning devices presently being designed or ede-
veloped. It is evident from the decades of progress we
hav; mentioned here today that there is a ~ch~ological
lag of 10 to 15 years from the time a concept or product
is initiated until it becomes accepted practice. Hence, I be-
lieve we can say, that what has not been conceived now
will have little change for effective use in the 70’s. Based
on what we know at present, material handling will tend
to be more highly automated – with the emphasis on
fixed path systems, such as automated storage and re-
triveal systems presently applied to in-process storage and
general material handling, and more advanced versions of
the driverless tractor which will be self loading and un-
loading. These tools will be applied to order picking, as-
sembly operations and be activated by EDP machines.
Previous failures in these automated order picking efforts
will become experience for the successful applications in
the 1970’s. Prior efforts have always been restricted to
picking the unit size – a case or carton — loaded into
the system; future systems will allow loading with unit
loads, but discharging in case lot units, and, most impor-
tant, assembling in~o &der or truckload lots.
The “box within a box” concept will be an accepted
material handling practice in the 70’s – containers will
be a way of life; and I mean all sizes of containers from
the tray, pallet, cargo, van sizes. The smaller ones will
be stuffed with product as early as possible in the distri-
bution cycle and be retained in that form to the latest
possible point in the cycle. We expect this will become
common practice with perishable products. Van size ship-
ping containers, but more likely their module sizes, will
be taken directly to the end of production lines in the
manufacturer’s operation or to the “stacks” in the distrib-
utors warehouse and be stuffed with product and by-pass
the order assembly staging areas on shipping docks. We
have the tools today in an embryonic stage to accomplish
this job.
Van containers will be used to broaden present markets
JOURNAL OF FOOD DISTRIBUTION RESEARCH SEPTEMBER 71/page 23and to penetrate new markets in a larger scale and
format than the initial efforts today, It is entirely feasible
to supply eastern and western markets from a Midwest-
ern distribution center. Retail stores will be serviced over-
night from a large master distribution center complex,
rather than building several distribution warehouses to
serve several trade areas. Distributors will use containers
and their attendant handling tools to serve new markets
and penetrate these markets ~ith less risk capital tied up in
brick and mortar. Distributors in the Continental United
States will move into European and Latin American mar-
kets and supply the retail outlets from Stateside distribution
centers through the medium of containers — dry groceries,
mrishables and frozen foods — and we will learn from the .
experiences of the military forces today who are delivering
foodstuffs from the West Coast to bases in South-East Asia
using 20, 24 and 35 ft. van containers – a total of 2,427
in March 1967. Patterns are also being established by ship-
ment of fresh meats from West Coast and Midwest sup-
pliers to markets in Hawaii and even into the Yukon
Territory of Canada. Recent experimental shipments of
-meat. tmoduce and citrus fruits initiated bv the U.S. De-
fiartrn~nt of Agriculture to European mark’ets are the be-
ginnings of greater things to come. Unitization on pallets
and slip sheets of product and citrus fruits in 1967-68
foretold dramatic changes in these distribution practices.
Material handling at the retail outlet today leaves much
to be desired and it is in this area we believe much will
be done in the coming years. Initial efforts will be con-
centrated on perishables and frozen foods and later will
be applied to dry groceries, principally convenience foods.
Conclusion
In summary, material handling in the 70’s will be . . .
1. A major function of the total distribution cycle.
2. Greater emphasis on fixed path automated equip-
ment.
3. More sophisticated and efficient fork truck equip-
ment.
4. Great utilization of containers in all phases.
5. Reduction in handling and manual restocking of
sales displays at the retail market.
6, Unitization of product into unit load form as early as
possible in the distribution cycle.
7. Trend toward elimination of order assembly staging
areas on loading docks.
8. Stuffing of containers or trailers at time order is picked
by means of module material handling “sleds” per-
mitting envelope loading of truck trailers.
9. Selective order picking by mechanical means from
unit loads of product,
.,. and to support these developments there must con-
tinue to be the development of better paperwork, record
keeping, and communications systems to permit proper
functioning, We must assume from past history that un-
less it is on the drawing board or under development
it is not likely that any product or system will have a
great impact on material handling in the 70’s.
SEPTEMBER 71/page 24 JOURNAL OF FOOD DISTRIBUTION RESEARCH

TOMORROW IS TODAY

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