KPI Solutions  /  Case Studies  /  CVS Health

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

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 build a new distribution center centrally in the United States that could service hundreds of stores.

The Solution

KPI designed a hybrid approach blending technologies for this multi-channel/full service, 762,000 sq. ft. distribution center (DC). The facility services 800+ retail stores in the Midwest and health service plans. They are a full-service Rx, with 30,000+ SKUs, not including behind-the-counter prescription drugs.

KPI installed a complete Warehouse Execution System (WES) to manage and orchestrate the flow of products.

Solution Highlights

  • High-speed wedge merge
  • Soft touch high-speed shoe sorters up to 200 cases per minute
  • Belt-driven motorized decline (100%) after sorts feeding palletizing stations

The Value

  • Increased efficiency with four and six-order batching carts/sleds picking solution
  • Increased accuracy with a complete WES
  • Increased throughput with a fully automated shipping system
motorized conveyor system in retail distribution center High-Speed shoe sorter conveyor in Pharmacy Fulfillment Pallet (unit load) transport system in retail distribution center