Improving Delivery, Reducing Cost

A healthcare services company and pharmaceutical distributor responsible for delivering to 40,000 pharmacies daily approached Fortna to design and implement a national re-distribution center to replace their two smaller DCs. They wanted to improve fulfillment time and reduce costs in the new DC that would house over $2 billion in inventory and ship more than a million items a day. Fortna designed and implemented a highly-automated 600,000 square-feet DC to include the largest and most secure storage and processing areas for the high value drugs and those requiring refrigeration. The 500 fastest-moving items, which account for 70% of the volume in the DC, are managed through a Goods to Person solution that uses automated guided vehicles (AGV) to retrieve pallets and deliver them to the picker. The new facility improved throughput by 220%, reduced operating costs by 25% and now allows the client to keep its promise to help deliver better care to patients.