1
Automating the Conventional
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
2
The Opportunity
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
3
How?
“Automate the Conventional”
4
Proven Technology
* First 3 QuartersSource: MHIA
2003 2004 2005 2006 2007 2008*0
10
20
30
40
50
60
70
80
90
100
40
60 60
7471
86
AGV Market Size(# Systems)
The number of AGV systems deployed has more than doubled in the past 5 years
The US AGV market alone exceeds $90M in sales
Adoption is motivated by escalating business drivers and significant technological improvements
Business drivers– Reduce or eliminate warehouse
labor
– Eliminate product and warehouse damage
– Improve asset utilization
Technology drivers– Maturity in software and controls
– Reliability and safety improvements
– Cost reductions
Automated Guided Vehicles (AGVs) are no longer just a point technology, they have become a broadly adopted warehousing solution
From the plant floor to the warehouse
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
Proven Results
Achieving ROI of 18 months or less
Lease Plans in Place to Reduce Operational Costs
6
Proven Results
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 29 300.0
10.0
20.0
30.0
40.0
50.0
60.0
ROI (2 Shift)
ROI (3 Shift)
# m
on
ths
to
re
ac
h R
OI
# fork lift vehicles
Proven Experience
7
3000+ AGV vehicles deployed
About HK Systems
HK Systems is North America’s leading total solutions provider of automated material handling and supply chain execution software
We develop, implement and support integrated solutions for the management of enterprise wide inventory, distribution, logistics and automated material handling systems
HK Systems’ solutions enable its customers to reduce costs, improve revenue and increase market share
We also manufacture a full line of automated guided vehicles, storage and retrieval machines, conveyors, and sortation equipment
8
Founded in 1969
Privately held since 1993
$250M in annual sales
1,000+ employees
325% growth since 1994
HK has Served 60% of the Product Producing Fortune 100
78% of our work comes as return business
Over 2,500 automation projects installed over a wide range of industries