Building the Business Case for Automation

A major distributor of pharmaceuticals was experiencing capacity constraints that limited their ability to grow. As SKU counts increased, they turned to Fortna to help design and build a multi-temp facility that would allow them to combine two existing facilities and more than double their capacity. But first we had to help them build a solid business case for change and justify the expense to investors. Fortna helped the client build a regional DC that could handle current volume in excess of 144,000 cartons and 1.4 million lines per week with room to grow by 2.5 times those figures. In this new facility more than 70% of their volume (representing only 5% of their 10,000 SKUs) is handled entirely by robots. The design not only helped them meet their growth goals but also reduced their operating costs by 25%, all within a facility that is only 50% larger than their previous DCs.