Klein Steel purchased the system about four years ago and has already upgraded it once. John Batiste, president, says the system originally had 1,500 cassettes and now has 2,350, with the potential to grow further. Both the installation of and addition to the system have increased efficiency, according to Batiste.
"When we bought the honeycomb system, we had 18 employees loading trucks, from a 1940s vintage foundry--a lot of muscle work, crane work and so forth," he says. "Today, we have reduced the number of employees loading trucks from 18 to eight, from two full shifts of loading to one split shift of loading. At the same time, we've quadrupled our business."
By the numbers
Each cassette in Klein's honeycomb system is 26 feet long and can hold up to 11,000 pounds. Batiste says the company stores nearly all of its long products in the cassettes to include structural steel of all grades, from mild steel, stainless, aluminum, brass and cold-rolled.
Additionally, the system has been a boon in regard to filling orders and getting them to customers. Batiste says that in the four years Klein Steel has had the system, the company has never missed a day of delivery.
"The system is computerized, so it keeps track of everything, from inventory quantity and weight and number of pieces to e-traceability," says Batiste. "The system has allowed us to significantly improve our inventory accuracy."
Further, he says 60 percent of what Klein Steel ships every day is picked from the honeycomb system and that it has enabled the company to expand its offerings.
"It's allowed us to open up new business with coded customers, where ASME heat-traceability standards are important," says Batiste.
Role of relationships
When Klein Steel decided to purchase the honeycomb system in 2005, the company built a new warehouse to accommodate it.
Fast-forward to the present, and Batiste says both the new facility and the system help underscore Klein's dedication to excellence.
"Anytime we bring a customer into Klein Steel, into our state-of-the-art warehouse, one of the showpieces is the Kasto automatic storage and retrieval system," he says. "And it's a wonderful marketing tool because the customer sees the value right away. They see that this technology is all about efficiency and cost avoidance."
Batiste credits Kasto with helping Klein Steel directly with the honeycomb system and indirectly with working with the company to meet its goals over the years. "Kasto has always been a great partner with Klein Steel," he says. "It's a strong relationship built on trust and transparency. We've found that relationship to be terrific, and I think the Kasto team would say the same." MM