ISG knows that no two projects are alike.  The results are system designs, implementations, technology and project management strategies specifically based on short and long term objectives.  While there is enough technology in the industry to move the world, ISG will only design and implement applications that will help achieve clients’ objectives.  Hy-Vee was no exception.

Hy-Vee is a touchstone for Midwest consumers’ desire for information on diet, nutrition and wellness topics. HealthMarket departments featuring natural and organic products; the consulting services of in-store dietitians; the NuVal Nutritional Scoring System; consumer and employee wellness programs; and the Hy-Vee Triathlon underscore the company’s commitment to healthy lifestyles.

The corporate office is located in West Des Moines, Iowa. The Hy-Vee campus includes a 12,000-square-foot conference center for meetings, training and continuing education programs.

The company’s distribution operations are based in Chariton, Iowa, where there are more than 1.5 million square feet of state-of-the-art warehouse space. Another large distribution center, encompassing 650,000 square feet of space for dry food products and general merchandise, is located in Cherokee, Iowa.

Recently, Hy-Vee was expanding the Cherokee facility and according to Tod Hockenson, VP of Distribution, “We contacted several rack suppliers and the project was awarded to Integrated Systems Group (ISG) based on price, expertise, and past customer service.  Challenges...cost, functional design, timing of installation with other building contractors, product durability and compatibility of new equipment with our existing facility were all considerations.”

Integrated Systems Group (ISG), www.integratedsysgroup.com, a division of Speedrack Products Group Ltd., is an integral part of a company with decades of material handling experience. It is one of the largest companies in the industry and enjoys a very strong financial position. ISG’s “forward thinking” engineering, design, and project management staff make it possible to design, develop, and deliver highly functional and cost-effective quality material handling systems to meet client’s specific needs every time.

According to Tim Bastic, Vice-President of ISG, “Due to Hy-Vee's continuing growth in their marketplace and desire to better service their company owned stores, they needed to maximize available cube utilization in the new dry grocery addition.  ISG provided carton flow racks for each picking of medium movers over the dock area (which is typically dead space) for space utilization along with over the dock empty pallet storage locations.  They needed an installation based on an accelerated time schedule, on time and under budget, while providing storage systems that would stand the test of time.”

Hockenson said that, “During the bidding process we had each suppler present their products and services.  After reviewing everything...the clear leader was ISG because of their very knowledgeable staff that is flexible and truly cares about their customers.  From start to finish, ISG took about eight months, provided an excellent finished product, ahead of schedule and under budget.”

Bastic said that, “The design of the Hy-Vee facility was to optimize storage capacity, worked in concert with the building architect on optimal building column spacing.  Racking systems with features to insure the long-term life of the racking systems, protecting the racking investment specific to potential impact from lift equipment by specially designed racking uprights and unique end of aisle guarding.”

Hockenson said, “Hy-Vee’s productivity is up about 10 percent and we increased our storage capacity by about 50 percent with this new addition.”

Bastic reported that “ISG worked hand-in-glove with our parent company, Speedrack Products Group, on a unique rack design that would provide long term strength and impact resistance. While protecting the racking we also are protecting the Hy-Vee grocery products in the racks as compared to occasionally used offset rack frames, which keep the rack frame away from the aisle but expose the product in the rack to potential impact and damage. ISG/Speedrack's design protects both the product and the racking for a lower cost per frames than off set type upright frames.  The rack frames were designed to be 44" deep vs. more conventional 42" to better protect the in-rack product and keep very narrow aisles to a minimum.”

Interestingly ISG did another system for Hy-Vee prior to the 250,000 square foot dry grocery addition in Cherokee, Iowa completed in 2009.  This earlier material handling effort utilized pre-owned equipment including order selection racking and a shipping conveyor system.  The benefit of this option allowed Hy-Vee to cut the cost of the capital equipment approximately by 45% vs. an all new equipment option.  The rack module as designed by ISG was actually installed by Hy-Vee for further capital savings.  This system allowed Hy-Vee the ability to order and select “fast to medium” picked items with less manpower and increased order accuracy.”

Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc, (www.trcutlerinc.com). Cutler is the founder of the Manufacturing Media Consortium of three thousand five hundred journalists and editors writing about trends in manufacturing.  Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, Committee of Concerned Journalists, as well as author of more than 400 feature articles annually regarding the manufacturing sector.  Cutler is also the developer of lean technology C.E.O (Continuous Experiential Optimization). Cutler can be contacted at trcutler@trcutlerinc.com.