The challenge: Ethical standards, government regulation, urgent medical needs and the threat of market entry by major retailers and 3PLs make pharmaceutical wholesaling a demanding business. In Australia, three major wholesalers compete for a retail market valued at 5 billion $ per annum servicing 5,600 pharmacies. Competition is intense. To get an edge, Australian Pharmaceutical Industries (API) implemented a new distribution center designed to deliver industry leading service, at lowest possible cost.
Our solution: After rigorous analysis, a fully integrated solution was developed featuring leading-edge order picking technologies and techniques to process orders quickly and accurately. Innovative technologies include RF-directed operations, Voice Picking, Vertical Carousels, and an automated A-frame and associated intelligent conveyor and sortation systems. All tasks from receiving through to dispatch are integrated using a single software platform, the PickDIRECTOR. The new system allows API to handle more orders at a lower cost with a better quality of service.
Benefits for API:
- Substantially improved productivity, throughput and capacity
- Increased order fulfilment accuracy to 99.8% for prescription drugs and 98% for OTC goods
- Projected labor savings of more than 4million$/annum by 3rd year of operations
- Capacity to support business growth
