Putting The Value In Value-Add

VARs and systems integrators who implement automatic identification and data collection (AIDC) solutions for inventory control are common.

Walk through any warehouse, and you'll probably see employees using bar codes and bar code scanners to track which items are being shipped and which are being put away.

So, what new avenues can AIDC VARs explore? Consider increasing value-adds beyond standard AIDC solutions. Forte Industries, based in Mason, OH, took that approach with warehouse inventory solutions. Today, the company racks up $16 million in business. Forte Industries is a nationally recognized consulting, engineering, and systems implementation organization.

The company integrates AIDC technology with material-handling automation, warehouse management system (WMS) technology, and warehouse control technology. This includes full project responsibility for the design of material handling, tracking and control systems, and implementation methodology. Forte Industries typically projects costs from $1 million to $5 million per project. "We work nationally with Fortune 500 companies and consumer goods manufacturers that are suppliers to mass merchandisers and retailers," says Gene Forte, company founder and president. "We also work with some small- to medium-sized companies."

Value At Every Stage Of The Game
"For new facilities, we design the initial sizing and building configuration for the customer," explains Forte. "But, we don't do the architecture or general construction. We will also design other areas like the cafeteria and office space so that everything is properly laid out. If a customer is located in a certain geographic area, we can refer the company to reliable contractors, architects, and even concrete providers we have previously used."

Forte Industries' Spectrum 2 program is the heart of what the company calls its design/build process. This program is designed to optimize a customer's manufacturing, warehousing, and distribution needs. Customers can be assured that the proposed solution will work, because the company that's designing the total solution is also responsible for the implementation. Forte has extensive experience in implementation — it knows what works and what doesn't. Customers find value in Forte Industries' single source responsibility. All aspects of design and implementation are managed or implemented by the company.

The first step for Forte Industries' customers in the Spectrum 2 program is the pre-planning assessment. This process allows Forte to develop a relationship with the customer, determine the project's feasibility, create material and information process flowcharts, and estimate the cost of the project.

The next — and biggest segment — is Spectrum 2's planning, design, and implementation phases. In the planning phase, Forte Industries' employees work with the customer to review data, create conceptual layout, create an initial project schedule and budget, and determine any other general specifications. During the design phase, Forte Industries works to validate the planning concepts, create detailed layout, and select the appropriate hardware and software for the applications. The company is also creating functional specifications, refining the project schedule, and firming up the budget during this process. The implementation phase concentrates on detailed engineering, project management, equipment procurement, installation, and operations and maintenance training.

The value-adds don't stop when the project is completed. Forte Industries also has an Investment Protection Support Services Program, INPRO, which provides preventive maintenance, remote support, hardware and spare parts, performance audits, and advanced training. Companies who have worked with Forte Industries include: IBM, Mitsubishi, Beiersdorf, Bayer Corp., Valvoline, Proctor & Gamble, Gerber, totes>>Isotoner, and Quaker Oats.

Bringing Technology On Board
Forte Industries couldn't offer such quality solutions if it wasn't an expert at integration. Automation doesn't work if the pieces of the puzzle don't fit together. "In our line of business," Forte explains, "everyone needs to become more efficient. You can only throw employees at any given operation for so long. If a business continues to grow, automation will be required to efficiently distribute products." Forte Industries elevates some of its customers from manual processes to rather high-tech solutions. To successfully integrate the technology needed to run a warehouse and automation company, a company has to have a strong command of technology and must monitor trends in consulting, design, and implementation.

Forte Industries began working with bar codes in the mid-80s. The goal was to provide high-speed product sortation and product tracking on automated conveyor systems. "We were passively involved early on with bar code technology," explains Forte. "If a customer needed to pick and ship a product, we were only concerned with diverting the box to the correct location. All of our bar code applications in the late-80s were in this same category."

In the early-90s, as part of Forte Industries' design/build solution, the company began to integrate WMS with automated material handling. As a result, bar code technology evolved into printer label applications and handheld scanners. "We wanted to offer the marketplace a higher level of expertise than we were previously providing," says Forte. "To do this, we had to learn how to integrate with WMSs." The integrated solutions that evolved from this mindset included WMS software downloading executable commands to Forte's Automation Director 2000 warehouse control system software. The software is the bridge between the WMS and the programmable logic controller (PLC) level controls that actually make the equipment perform.

How It Works
A typical application using the Automation Director 2000 involves simultaneous downloads from the WMS to radio frequency (RF) scanners in the pick modules, and to the printer label applicator PC and the shipping sorter PC. Downloads to the radio frequency scanners direct the pickers to split- and full-case pick areas, and tell employees which product and quantity to batch pick to efficiently fulfill multiple orders within a batch of orders (also known as a wave). Once products are picked, they are placed on a conveyor system for intelligent routing to various locations in the facility. This process is controlled by Forte Industries' Automation Director 2000 software.

When packages reach fixed-mount bar code scanners near the conveyor belts, they are scanned, and a compliance-shipping label is created at a bar code printer/label applicator. It's then automatically applied to the package. Another scanner further down line scans the bar code to make sure that the correct label was printed and affixed to the carton. When the correctly labeled carton arrives at the high-speed shipping sorter, the carton is scanned so Automation Director 2000 can, in real time, determine from many sort destinations where to direct the carton.

At the end of the shipping lanes, employees palletize by using handheld or fixed-mount scanners. This last step is designed to confirm with the WMS that the scanned package was sent to the correct destination via the high-speed shipping sorter. Data storage temporarily resides on a PC, which is also automated by Forte Industries' Automation Director 2000 software. "We don't need to store data for long periods of time," explains Forte. "Storage units, such as redundant array of independent disk (RAID) or jukebox systems, would typically be found in conjunction with the WMS. A PC takes care of all our storage needs."

Valuable Employees Produce Value-Adds
Forte will be the first to admit that his company's success stems from the high-caliber employees at Forte Industries. "All our projects have a good degree of risk associated with them," Forte explains. "To remain successful, we must execute our projects with highly experienced personnel. Our senior-level people possess 20 to 30 years of experience. A number of our current 27 employees have master's degrees, professional engineering licenses, or are CPAs. We are running a high-tech business with high-tech employees. We make presentations to presidents of Wall Street companies. The customer is entrusting the future of the company to our performance. If we don't deliver, the customer can't ship its product."

"To make sure that our employees can provide quality service, we monitor workload capacity," Forte explains. "If our backlog indicates that a department or group of employees will be over capacity for a certain period of time, we will try to aggressively recruit to alleviate the situation. Also, if a high-level employee becomes available, we will work to make room for that person to come on board. The availability of high-caliber employees can help us grow. However, we don't grow just for the sake of growing. That was our problem in the mid-80s, when we were named as one of Inc. magazine's "Inc. 500" companies (see related sidebar). Around that time, I put together our first five-year strategic plan, which included restaffing the organization to go to the next level. We did just that, and the results have been controlled growth and financial success. If I still had the same number of employees that I had 15 years ago, I wouldn't be successful."

Return on investment (ROI) can be the biggest value-add in the eyes of the customer. With Forte Industries' customers, ROI is seen through labor savings and avoidance of back charges due to compliance issues. "We help our customers by designing and implementing a cost-effective system," says Forte. "Because we are custom designing solutions, we help our customers by maximizing productivity and minimizing labor costs."

Keeping Ahead Of The Competition
"Since we are a highly niched company," says Forte, "I keep an eye on a variety of industry segments. I track trends dealing with consulting, VARs and distributors, and the manufacturers. For the most part, we don't have direct competition for design/build projects. We stand apart from material handling distributor and consultants because neither typically develops its own software. Our Automation Director 2000 software directly controls all automated warehouse aspects — from material handling automation, to material tracking and control. Consultants also don't implement the technology that they suggest."

"I could have identified a dozen direct competitors 15 years ago when we distributed material-handling equipment," he continues. "I believe those companies are still successfully operating in their broader categories, and offering the same value-adds. We are constantly improving our value-adds and the way we do business in general."