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Int mc kesson_casestudy


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  • 2. The Perfect Prescription Benefits achievedWhen you think about hospitals, the emergency ward is the mission critical point. • The McKesson facility shipsBut when you think about being a pharmaceutical company the distribution center is orders at rapid speed.the most critical point. McKesson, the world’s largest pharmaceutical wholesaler, was • The facility is super energy efficient.concerned about the growing population being served out of their facility in Florida.The perfect prescription was the design of the new Lakeland facility. The need to ship • ROI was obtained in less than 12 months.rapidly, accurately and economically may be a conflict but the goal was accomplishedand the facility is exceeding expectations.Florida’s population is growing at a critical rate and many of the residents are seniorcitizens who take an average of seven medications per day. McKesson ships prescriptionmedicines, over-the-counter drugs and health and beauty aids for hospitals, drug storesand retail chains throughout all of Florida. The system needed to be designed withmaximum throughput but yet with flexibility of growth for the growing population.The facility design is unique and not just a run of the mill design. Besides having thenormal full case, piece picking and full pallet requirements, this McKesson facility alsohad drugs that needed to be refrigerated, security drugs that needed to be in a lockedcage and secure items required by the FDA to be in a vault. When order picking iscomplete all the pieces of an order in all the different pick areas need to come together.This was accomplished with an Intelligrated® conveyor system. The orders are thencombined at the shipping dock where the labels are scanned and merged. IntelliSort®The McKesson facility is operating six days a week because most of their customersdo not store much inventory and use this new Lakeland facility as their warehouse Industrystorage system. With over 45,000 stock keeping units stored in this 225,000 square foot Pharmacuticalsdistribution center, McKesson is operating with a lean staff. “It was important that thedesign flowed in a way to get maximum throughput but still give the employees greatproductivity enhancements,” said Craig Stewart, of FCP Integrated Systems, the systemintegrator for McKesson and an Intelligrated® partner.ROI Achieved Faster Than Expected!McKesson installed Intelligrated’s ® new MDR conveyor. Because this is smart conveyorand only runs when needed instead of continuously, the added benefit is a reductionof power. This reduction of power, along with other benefits already expected, allowedMcKesson to receive a six month return on investment. MDR Belted InclineThe system is designed to activate individual conveyor zones only when a product ispresent. At other times, the rollers shut off, which substantially reduces electrical needsand decreases noise levels. 2
  • 3. picked. McKesson uses a pick and pass order picking “The sorter is so methodology with conveyor transporting totes from quiet that I can zone to zone. stand next to it and still have There are verification stations that digitally record the a cell phone contents of each outgoing carton and then they are conversation.” put on a sliding shoe sorter which has been designed to conserve energy and lower noise levels within a Doug Pace distribution center. The orders are then sorted to one General Manager of ten shipping docks. The replenishment of the carton McKesson, flow rack was designed by FCP to include a conveyor so Lakeland that the product is delivered to the stocker reducing walk time and touch times. The stocker has a specially designed step ladder that arches over the conveyor to reach the top of the rack to replenish. 2004 Modern Materials Handling Productivity This system is using MDR conveyor which saved Award Winner – McKesson the cost of 147 drive motors. The MDR Warehousing conveyor is easy to repair in addition to being the most energy efficient conveyor in the industry. The decrease in AC units is estimated between 30-70% depending on volumes. When the facility is at full capacity and speed, this is a huge savings for McKesson.Components Of The System Partners In SuccessWhen an order is received in the new McKesson Intelligrated’s distributor, FCP Integrated Systemsstate-of-the-art facility the message is sent to the order (, worked with McKesson to design apicker via a wireless terminal. Picking occurs at several system that would enhance their throughput and givedifferent places in the warehouse. Messages are sent them flexibility and the ability to respond the order pickers in a two level pick module whereover-the-counter and health and beauty aids are “The McKesson team was very concerned about customer satisfaction, speed, accuracy and throughput, which were all must requirements. Intelligrated® worked with us to help design a solution that will serve McKesson well into the future,” said Craig Stewart, President, FCP.Intelligrated ® Motor Driven Roller 3
  • 4. About Intelligrated Intelligrated Service & SupportIntelligrated is a leading American-owned, single-point The in-house Customer Service and Support (CSS) programprovider of automated material handling solutions with offered by Intelligrated backs all of our products. Servicesoperations in the U.S., Canada and Mexico. Headquartered available include:in Cincinnati, Intelligrated designs, manufactures and • IN-24x7® technical support hotlineinstalls complete material handling automation solutions, • Spare parts logisticsincluding IntelliSort® line sortation systems, Crisplant® • Field servicetilt-tray and cross-belt sortation systems, conveyor systems,Alvey® palletizers and robotics, Real Time Solutions® • Equipment and system auditsorder fulfillment systems, warehouse control software • Upgrades and modificationsand advanced machine controls—all supported by 24x7 • Full service and maintenance contractsCustomer Service and Support. • Preventive maintenance • Customer trainingServing the warehousing, distribution, consumer product CSS is available 24x7 to provide all of the services neededmanufacturing, postal and parcel markets, Intelligrated to keep your equipment running at peak efficiency.collaborates closely with its clients to develop productivity Whether it’s on-site support or troubleshooting viasolutions and responds to their needs throughout the life our hotline, Intelligrated has the most comprehensiveof their material handling systems. customer support program in the industry. Service and Parts Hotline Phone + 1 877.315.3400Intelligrated Products www.ontimeparts.comand Services• Systems Integration• Sortation Systems• Conveyor Systems• Palletizing Solutions• Software & Controls• Order Fulfillment Systems• 24x7 Technical Support• Design & Build Headquarters in Mason, Ohio For more information, contact: 7901 Innovation Way, Mason, Ohio 45040 + 1 866.936.7300 www.intelligrated.comCSMcK01 12.09 © 2009 Intelligrated. All rights reserved.