Automation solutions for conventional warehouse and distribution facilities

1. Automating the
Conventional
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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
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3. How?
“Automate the
Conventional”
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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
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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
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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
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7. Proven Experience
3000+ AGV vehicles deployed

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
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