Robotic Solution on Mezzanine by SCALLOG

In its logistics distribution center in Wandre, Belgium, NEWPHARMA is further expanding the storage capabilities of its SCALLOG robotic solution to enhance its efficiency. The result is operational excellence aimed at maximizing picking and restocking performance in terms of productivity, quality, and cost reduction, all while improving the quality of life for operators!

Nanterre, December 12, 2023 – With nearly 5 million customers in more than 10 countries, the Liège-based company NEWPHARMA ranks among the top 3 European e-pharmacies, with a motto of "making health and well-being accessible to all" in terms of price and services. This online pharmacy, with a historic dispensary in the center of Liège, stands out for its extensive range of 55,000 references, from over-the-counter medications to parapharmacy products, detailed dosage advice, and next-day delivery for orders placed before 12:00 PM. To align its logistics with its customer promise and growth, NEWPHARMA has relied since 2022 on a new "state-of-the-art" automated distribution center, spanning 30,000 square meters over three floors, processing 8,000 to 10,000 orders per day. A key feature of its logistics performance is the SCALLOG robotic "Goods To Person" area, covering 1,500 square meters on a mezzanine on the top floor. According to Arnaud Gielen, Director of Operations at NEWPHARMA, "Efficient logistics, combining speed and quality of processing, is crucial to ensuring competitive prices and delivery times, essential criteria for online shoppers. SCALLOG robotics ensures that we optimize our product flows and accelerate the pace of order preparation, making it 'humanly possible' and at the best cost."

Beyond a new warehouse, automation as a lever for accelerating flows Facing double-digit growth, NEWPHARMA, a subsidiary of the Colruyt Group since July 2021, initiated the construction of a new automated distribution center in 2020 to centralize and optimize all its logistics operations, operational in the fall of 2021. One of the key challenges was to increase the picking rates of products to ensure the rapid processing of orders required for a next-day delivery. The SCALLOG solution – mobile shelves transported by robots to operators – quickly emerged as the most relevant technological answer to integrate seamlessly into the new multi-story warehouse and operational flows of NEWPHARMA. Arnaud Gielen states, "In addition to its suitability for our environment and automation requirements, the SCALLOG solution stood out for its flexibility, agility, and, above all, its scalability. It ensured that we could modify our automated storage area according to the evolution of our picking needs in case of peak activity, unlike a traditional intralogistics solution."

The project unfolded in several "key moments" to maximize the automated area according to the best processes and practices. The installation was completed in the fall of 2021, and the first operational phase was in place by the fall of 2022. In November 2023, the SCALLOG solution, enriched with around twenty additional mobile shelves, will reach its full performance potential. Thus, the SCALLOG solution comprises 275 mobile shelves transported by 20 robots to four order preparation stations, including one dedicated to restocking. Covering an area of 1,500 square meters on a mezzanine, the SCALLOG zone has a small footprint. Notably, every other order passes through the SCALLOG area, with 10 to 13,000 products picked each day and 24,000 products restocked.

SCALLOG Robotics as a Lever for Operational Excellence at NEWPHARMA

Today, the SCALLOG solution contributes to the operational excellence of the distribution center by maximizing its performance in terms of productivity, cost reduction, and quality, all while enhancing the working conditions and quality of life for operators. In addition to high storage density, the SCALLOG solution has resulted in a productivity gain of over 50% in the preparation of product orders. Arnaud Gielen shares, "With SCALLOG robotics, four operators effortlessly and smoothly accomplish the work of about ten operators. It's a key asset, especially with the labor shortage in our Liège port area."

Furthermore, the SCALLOG solution allows NEWPHARMA to easily handle peak activity periods, smoothing operations. For example, on Monday mornings or during Black Friday, which signifies 15 intense days of activity and a 50% increase in order preparation volume, the restocking station transforms into a picking station, and additional preparation stations are added to handle these busy periods.

Another benefit of the SCALLOG solution is the optimization of operation quality, with an error rate approaching zero in picking and stocking. At every stage of picking or restocking operations, operators are guided through the screen and Spot To Light system to pick or store the "correct" product. Moreover, it ensures stock management in perfect compliance with pharmaceutical regulations, including expiration date management, and real-time inventory. Laurence Vertessen, Head of Order Preparations, adds, "Assisted by the SCALLOG solution, which does not replace them, operators are reassured about the quality of operations and proud of the work they do."

A final "plus" in operational excellence, the SCALLOG solution has significantly improved working conditions and the quality of life for logistics operators. There are no more multiple movements – up to 10 kilometers per day for an operator – and no more unnecessary handling or error risks, reducing stress. Additionally, operators develop new skills, ensuring versatility. Laurence Vertessen adds, "Facing recruitment challenges, the SCALLOG robotic solution proves to be a significant asset in attracting and retaining new collaborators."

In the coming months, NEWPHARMA plans to automate packaging operations. Arnaud Gielen concludes, "In the near future, we plan to double the SCALLOG installation to gain, once again, speed and agility in the execution of our picking and storage tasks, as digital usage accelerates in healthcare and the rise of prevention and natural health."