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Building a New Facility to Support Retail Growth

A healthcare and retail pharmacy distributor required a new 762,000 sq. ft. distribution center.

High-speed sliding shoe sorters and storage racking

The Client

CVS Health is an American healthcare company that owns a retail pharmacy chain, a pharmacy benefits manager, a health insurance provider, and multiple other brand names.

The Challenge

The client’s retail store count was rapidly growing, and their current Indianapolis distribution center could no longer handle the increased volume. They reached out to KPI to design a new distribution center centrally in the United States that could service 800+ stores in the Midwest and support health service plans. The facility manages a full-service Rx, with 30,000+ SKUs, not including behind-the-counter prescription drugs.

The Solution

KPI designed a hybrid approach blending best-of-breed conveyor and sortation technologies for this multi-channel/full service, 762,000 sq. ft. distribution center (DC). The design includes advanced conveyor and sorting technologies, such as high-speed wedge merges, soft touch shoe sorters capable of up to 200 cases per minute, and belt-driven declines feeding palletizing stations, which enhance the efficiency and throughput of the facility.

Solution Highlights

  • Conveyor and Sorting Technologies: Includes high-speed wedge merges, soft touch high-speed shoe sorters capable of handling up to 200 cases per minute, and belt-driven motorized declines feeding palletizing stations.
  • Module Efficiency: Split case and full case pick modules feature powered conveyors optimized for rapid picking and accurate order fulfillment. Additional systems, such as the Slapper Lines and Pre-Sort Area, use advanced merges and singulators to streamline the flow into the sorter.
  • Advanced Shipping System: Utilizes a high-speed shoe sorter with 43 divert lanes, supported by gap optimization and photo-eye technology for precise sorting and jam detection, ensuring high throughput and accuracy.

The Value

  • Increased Efficiency: Utilizes four and six-order batching carts/sleds picking solution, significantly enhancing picking processes.
  • Enhanced Throughput: The fully automated shipping system ensures rapid product movement from sorting to shipment, accommodating high volume demands efficiently.
Financial Impact

Soft touch high-speed shoe sorters capable of handling up to 200 cases per minute.

Photo-eye technology for precise sorting and jam detection, ensuring high throughput and accuracy.

The fully automated shipping system ensures rapid product movement from sorting to shipment.

motorized conveyor system in retail distribution center High-Speed shoe sorter conveyor in Pharmacy Fulfillment