Dematic Supports Aster Pharmacy to Achieve Scalable Growth with Innovative Automated Fulfillment

The challenge
Aster Pharmacy faced the challenge of scaling its operations to meet increasing demand in the UAE, Saudi Arabia, and other Gulf Cooperation Council (GCC) countries, as well as significant growth in its e-commerce operations.
“In three years, we are targeting to do around 20,000 e-commerce orders every single day,” explained Mr N.S. Balasubramanian, CEO at Aster Retail. “The key pillar and most important aspect to support this is of course the supply chain.”
Aster Pharmacy turned to Dematic for a highly automated, scalable solution that would optimize their fulfillment processes and accommodate their plans for future growth.
Customer order fulfillment challenges undermined the capacity for expansion
Aster Pharmacy’s existing fulfillment operations were primarily manual, which posed challenges in handling the growing volume of orders, particularly as they set their sights on doubling its capacity within the next three to five years. Their 13,000-square-meter distribution center (DC) catering to pharmacies, hospitals, and clinics across the region handled 50 million units annually, including both inbound and outbound volumes. The operation covers more than 15,000 stock-keeping units (SKUs), shipping over 300,000 orders per week.
“We wanted to be able to touch more lives,” explains Alisha Moopen, Managing Director & Group CEO for Aster DM Healthcare. “For us, this required technology that could support our vision to scale operations.”
“We needed a solution that would streamline our supply chain operations,” says Vamsi Krishna, Head of Supply Chain at Aster DM Healthcare. “Our goals were to improve overall DC efficiency, increase processing speed, and lower costs, while maintaining high service levels for our customers.”
The solution
After conducting extensive due diligence and evaluating several solution providers, Aster Pharmacy chose Dematic to deploy a solution featuring an AutoStore™ system. The system automates manual picking processes, dramatically improving efficiency while maintaining the accuracy and speed required to support Aster’s growing operations.
“We provided a solution based on the business problem to be solved and the return on investment,” explains Mithun Perinchery, Head of Sales - Middle East, Türkiye, and Africa, Dematic. “The AutoStore system by Dematic can pick up to 1,000 order lines per hour for outbound and 100 order lines inbound. It stores pharma products in multi-SKU bins with a pick pointer for easy picking.”
The AutoStore system from Dematic consists of 17,250 storage bins, 33 robots, eight ports for picking, and four ports for inbound goods. This solution, the largest of its kind in the UAE, handles up to 3,000 order lines per hour.
“It was a process with a lot of due diligence and evaluation,” Krishna explains. “We needed to choose the right solution and the right partner capable of executing it. Dematic met our needs and exceeded our expectations.”
With pharmaceutical products stored in multi-SKU bins, Aster Pharmacy can facilitate faster and more efficient picking. The dense storage of the AutoStore system also provides efficient use of space, reducing the need for additional square footage even as order volumes increase.
Smooth system integration drives fulfillment efficiency
Implementation of the system was smooth and on schedule, with minimal disruption to operations. This was made possible by the close collaboration between Dematic and Aster Pharmacy teams who worked together to develop a strong governance model and rigorous testing protocols.
“Working with Dematic was seamless,” says Krishna. “They have proven why they are leaders in the intralogistics field, and their unwavering support has been a key factor in our success.”
The transition to the new system also included comprehensive training for Aster staff for full operation from day one. Dematic provides ongoing support, including a combination of 24/7 remote and local service plans to ensure maximum system availability and fast response times.
The results
Since implementing the AutoStore system from Dematic, Aster Pharmacy has seen significant improvements in fulfillment speed, accuracy, and overall efficiency. Aster Pharmacy is now handling more orders without needing to add warehouse space.
“Seventy percent of our volumes are now picked using our AutoStore system, which has dramatically increased our efficiency,” Krishna says. “The speed of fulfillment has improved, resulting in better service levels for our customers, while keeping costs low.”
As a result, Aster Pharmacy has been able to optimize its existing workforce. Instead of hiring additional staff to keep up with growing demand, they can now scale their operations without increasing labor costs.
“The increased storage efficiency meant that we needed less space to fulfill the same amount of business, and we were able to utilize our existing manpower while catering to our growing needs,” explains Krishna.
Aster’s long-term plans include further expansions within the UAE and into other GCC countries, as well as a significant e-commerce push. With the Dematic solution in place, Aster Pharmacy is well-positioned to handle an anticipated 20,000 e-commerce orders per day within the next three years.
Looking to future growth
Aster Pharmacy is optimistic about its future growth, particularly with the robust support of Dematic. The collaboration between the two companies has laid the foundation for continued success, as Aster Pharmacy looks to double its operational capacity and scale its reach across the region.
“For us, it’s all about creating a better environment for better health,” says Moopen. “We are excited about new solutions in healthcare that help us implement better care for our patients. The AutoStore system from Dematic has been a critical part of that journey, helping us deliver life-changing medications and services to our customers quickly and accurately.”
The partnership highlights the value of working with a solution provider that not only understands a company’s current needs but also has the vision and expertise to support its future ambitions.
“We have built a strong working relationship based on mutual trust. Dematic has been a fantastic partner, and we look forward to continuing this journey together,” Krishna concludes.
About Aster Pharmacy
Aster Pharmacy, part of the larger Aster DM Healthcare Limited, has been a prominent player in the healthcare and pharmaceutical industry for over 37 years. Headquartered in the United Arab Emirates (UAE), Aster Pharmacy is committed to delivering end-to-end healthcare, encompassing primary, secondary, and tertiary care.