Robotic storage system transforms NZ pharmaceuticals warehouse

Douglas Pharmaceuticals, New Zealand’s largest privately owned pharmaceutical company and the country’s leading supplier by volume into the growing pharmacy channel, was outgrowing existing storage operations at its West Auckland warehouse for domestic orders to retail, wholesale and direct-to-consumer (DTC) customers, and needed to meet its bold growth targets.

Options explored included moving to a larger space off-site and increasing the footprint of the existing building. However, these came with drawbacks, including having to reconfigure the road network or move operations off Douglas’s campus in Henderson, Auckland. Douglas wanted a solution that didn’t just scale up its existing manual operation and associated challenges, but also futureproofed its warehouse operations by increasing density, efficiency, accuracy and throughput.

In the end, the company decided to approach Kardex to help expand its manual warehouse operations. As a result, New Zealand’s first AutoStore automated system is up and running at the Henderson site.

The AutoStore system comprises over 6000 storage bins and 13 robots, and has made picking four times faster. It also provides the extra inventory storage needed for Douglas to achieve its ambitious expansion goals without requiring the company to fund an expensive expansion of its current warehouse or move to a new location.

The AutoStore robotic cube storage system is transforming Douglas’s warehouse operations, after Kardex worked closely with Douglas to tailor the AutoStore solution to meet its current and future needs. Both companies describe the project as a true collaboration, praising the team for the success of the project, which came in on time and on budget.

Kardex says the AutoStore automated storage and retrieval system (ASRS) is the world’s fastest goods-to-person (GTP) system per square metre. It comprises bins stored in a high-density grid, with robots working to carry and deliver products to ports where they are picked and packed to customers’ orders.

Working with Kardex, Douglas reimagined its warehouse space to achieve 30% more storage using only 10% of the building’s footprint. The AutoStore system was installed following intensive planning and modelling to ensure a smooth transition. It required no expensive physical changes to the warehouse or its power capacity, as 10 AutoStore robots consume as much energy as one vacuum cleaner. The primary adjustment was grinding the floor for the AutoStore Grid, and the system was built alongside Douglas’s existing warehousing operation to minimise disruption.

New ports and robots can easily be added in the future and the system is equipped with round-the-clock capabilities. It is expected to meet demand for the next five years in its current form. The AutoStore solution has increased picking rates by four times and delivers 99.9% accuracy. Robots handle product movement and Douglas employees pick items at ergonomic stations to reduce strain and enhance safety.

“I am so proud of the work done by our team and Kardex’s to meet and achieve our goals and ensure we are ready for an exciting future, expanding our consumer goods operation,” said Jeff Douglas, Managing Director of Douglas Pharmaceuticals. “This investment is futureproofing storage and fulfilment, reducing waste, and improving work for our warehouse team.”

“This is the future of fulfilment and we are impressed by the way in which Douglas and the whole team have embraced the technology and made it such a key part of their business,” added Grant Smith, Head of Business Development ANZ for Kardex.