Automating The Conventional

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Automation solutions for conventional warehouse and distribution facilities

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Automating The Conventional

  1. 1. Automating the Conventional 1
  2. 2. The Opportunity If your warehouse…  Is a multi-shift operation (2-3 shifts per day)  Utilizes four or more lift trucks performing storage moves  Stores and retrieves primarily full pallets weighing 3,000 lbs or less You may be able to achieve significant operational savings in very short order • Warehouse labor reductions of 75% or more • Higher quality order fulfillment • Elimination of product and warehouse damage 2
  3. 3. How? “Automate the Conventional” 3
  4. 4. Proven Technology From the plant floor to the warehouse  The number of AGV systems deployed has more than doubled 100 AGV Market Size in the past 5 years (# Systems) 86 90  The US AGV market alone 80 74 71 exceeds $90M in sales 70 60 60 60  Adoption is motivated by 50 escalating business drivers and 40 significant technological 40 improvements 30 20  Business drivers 10 – Reduce or eliminate warehouse 0 labor 2003 2004 2005 2006 2007 2008* – Eliminate product and warehouse Source: MHIA * First 3 Quarters damage – Improve asset utilization Automated Guided Vehicles (AGVs)  Technology drivers are no longer just a point technology, – Maturity in software and controls they have become a broadly adopted – Reliability and safety improvements warehousing solution – Cost reductions 4
  5. 5. Proven Results  A World Leader in Imaging and Information Solutions − 50% increase in warehouse material handling volume − 1.3 Year return on investment  A Midwestern Injection Molding Company − Over 100% increase in storage density − Off shift lights-out truck staging for truck loading  Major US Brewer − Over $3M in annual labor savings  Fortune 100 Food Manufacturer − Process improvements with quantifiable return on investment − Multiple facility installations (~100 AGVs)  Canadian Retailer − Verifiable operational efficiency gains − Significant rack damage reduction 5
  6. 6. Proven Results  Achieving ROI of 18 months or less  Lease Plans in Place to Reduce Operational Costs 60.0 50.0 ROI (2 Shift) # months to reach ROI 40.0 ROI (3 Shift) 30.0 20.0 10.0 0.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 # fork lift vehicles 6
  7. 7. Proven Experience 3000+ AGV vehicles deployed
  8. 8. About HK Systems Founded in 1969  HK Systems is North America’s leading total solutions provider of automated material handling and supply chain Privately held since 1993 execution software  We develop, implement and support $250M in annual sales integrated solutions for the management of enterprise wide inventory, distribution, logistics and automated material handling 1,000+ employees systems  HK Systems’ solutions enable its 325% growth since 1994 customers to reduce costs, improve revenue and increase market share HK has Served 60% of the Product Producing Fortune  We also manufacture a full line of 100 automated guided vehicles, storage and retrieval machines, conveyors, and 78% of our work comes as sortation equipment return business Over 2,500 automation projects installed over a wide range of industries 8

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