Founded in 1967 in New Zealand, Douglas is one of the country’s largest privately-owned pharmaceutical companies and described as a respected name in the global pharmaceutical industry. As well as producing prescription drugs, Douglas develops, manufactures and distributes a wide range of consumer health and wellness products.
The company says as New Zealand’s leading supplier by volume into the growing pharmacy channel it faced increasing demand for inventory storage to support domestic orders for retail, wholesale, and direct-to-consumer (DTC) customers. This demand was bringing its West Auckland warehouse to near capacity.
Douglas sought a solution to increase its storage capacity that didn’t just scale up its existing manual operation and associated challenges. With warehouse and distribution, sales, marketing and corporate head office on the same site, Douglas, which has a significant New Zealand based manufacturing and distribution presence alongside exporting to over 40 countries, wanted a future-proof solution that could support its ambitious growth plans. Having explored a range of potential solutions, including expanding the warehouse and off-site storage, the company turned to automation.
Douglas initially approached Kardex, a global partner for AutoStore, to explore how an AS/RS could serve its fulfillment operations. The selection of AutoStore resolved capacity issues, increased throughput and enabled significant future growth.
Solution: AutoStore empowered by Kardex
AutoStore, a cube-based warehouse automation provider, is the “world’s fastest goods-to-person (GTP) system per square metre”, comprising robots and bins operating across a high-density grid. Driving along the top of the grid, robots work tirelessly to carry and deliver bins of products to the ports, or workstations. Teams from Kardex and Douglas’s consumer business unit carried out intensive planning and modelling to ensure it was the right fit for the business. The companies also worked on change management and created internal champions to ensure a smooth transition.
The AutoStore system required no expensive physical changes to the warehouse or its power capacity. The primary adjustment was using CoGri (New Zealand) to grind the floor for the AutoStore grid once Face Consultants (New Zealand) tested the floor surface. Part of the CoGri Group, both companies won praise from Kardex and Douglas. Disruption caused by installing AutoStore is minimal and the AutoStore grid was built alongside Douglas’s existing operation.
Jason Wu, business development manager for AutoStore ANZ, says, “You can scale without stopping operations and we will build while the operation is running. With AutoStore, new ports can be added easily, and new robots can be deployed within minutes.”
Benefits: High density, efficiency, flexibility, accuracy
Currently, the system only takes up around 10% of the footprint of the building and is expected to meet demand for the next five years in its current form. High throughput was another big draw for Douglas and, according to Andrew Mackintosh, Douglas Pharmaceuticals general manager supply chain, “A manual picker can do 50 order lines an hour, whereas the AutoStore could do 200.”
Douglas is widely recognised for, and committed to, exceptional levels of customer service and fulfilment. As well as being four times more efficient, the AutoStore solution improves accuracy, traceability and stock management operations, making sure the right products are delivered at the right time in line with critical factors such as batch sensitivity and best before dates.
The AS/RS eliminates repetitive, boring and strenuous manual warehouse work and improves safety, with robots handling product movement while workers pick items at ergonomic ports. This shift also enhances employee satisfaction by moving workers into less physically demanding and more rewarding roles, without any reduction in permanent workforce at Douglas.
Kardex, AutoStore and Douglas are committed to sustainability. All bins are recyclable and made to last, and 10 robots use the same energy as a single vacuum cleaner. Grids can adapt to any building layout utilising dead space and enabling companies to use their buildings more efficiently, significantly reducing energy use.
More NZ companies exploring AutoStore
AutoStore systems are already operational in Australia as part of the 1,500-plus AutoStore systems installed worldwide and companies in New Zealand are closely watching the success of the Douglas project, with more deployments expected.
Grant Smith, head of business development ANZ for Kardex, says that the solution is accessible to companies of all sizes: “I think the key message is that you don’t have to be a blue-chip or top-tier company to afford this kind of solution. There’s an opportunity here to explore scalable technology that doesn’t require a massive capital investment but can still help you grow and improve your business.”
All three companies say they are thrilled with the project’s success; delivered on time and on budget.
“Douglas’s openness to a collaborative process has been exceptional,” says Smith. “I look forward to supporting others on their path to enhanced efficiency.”
Mackintosh describes the partnership as “a true collaboration”, adding that the solution has “helped us solve our challenges as well as improve our processes to get ready for the future”.
Sponsored content: For more information email grant.smith@kardex.com.