Speed and accuracy are essential to any distribution operation. But expectations are turned up a notch or two when it comes to pharmaceuticals and related healthcare products.

Just ask Doug Pace, general manager at McKesson's new DC in Lakeland, Florida. He says it provides a faster response, increased accuracy and greater throughput than the company's previous DC in Tampa, which had become overcrowded and lacked desired efficiencies.

Furthermore, McKesson, the world's largest pharmaceutical wholesaler, needed a DC that could keep pace with Florida's population, which grows by a 1,000 every day. In addition, every senior in the state takes an average of seven medications.

The materials handling in the facility (FCP Integrated Systems) is designed to effectively process prescription medicines, over-the-counter drugs, and health and beauty aids for hospitals, drug stores and retail chains throughout Florida.

Critical to Lakeland's success are DC-powered conveyors and an efficient sliding shoe sorter. The facility is also very strong on the information side. It includes picking directed by wireless terminals, verification stations that digitally record the contents of each outgoing carton, and Palm Pilots that provide visibility of items shipped.

'We have gained productivity and the ability to locate product efficiently throughout the facility,' says Pace. 'We have been able to expand our controlled substance area and refrigerated area for our biotech products because of their growing importance to our customers. We also wanted to improve our handling for our Rx [prescription] products. This warehouse is geared to that process.' The increased space in Lakeland allows for improved slotting of inventory and room to grow along with the state's population.

The facility ships products six days a week. Much is sent to seven delivery hubs located strategically throughout the state. These facilities then sort deliveries for specific carrier routes. The combination of the efficient Lakeland DC and the regional hubs allows retail and hospital customers to receive orders quickly, and keep their own inventory levels low.

'Our customers are skinny on their inventories,' explains Pace. 'We work with them on a just-in-time process. A hospital may only have eight doses of a particular drug. In essence, their back storeroom is now here in this warehouse.'

To better process orders, Lakeland was designed with its mix of products in mind. A large security cage houses particular prescription medications, such as chemotherapy drugs that need to be stored and delivered separately from other medications. A cooler stores biotech products and other drugs that require refrigeration. And a vault is used to hold certain controlled drugs, as mandated by the Food and Drug Administration.

In each of these, processing of orders works as if they were separate small warehouses within the larger warehouse. Receiving, putaway, picking and packing are performed directly within the areas. Product is then held there until just before the over-the-road trailer is ready to depart the facility. At that time, the items are brought to the docks and deposited onto the trailer. The truck driver must be present for the loading, as he is responsible for the contents once the trailer is sealed.

Other products, including health and beauty aids, are picked within a two-level pick module. These picks are directed by the facility's radio frequency data communication system and placed into reusable totes. The totes are then sent to the end customer, saving greatly on packaging costs. Emptied totes are retrieved at customer facilities upon delivery of the next orders.

The facility was also designed to be energy efficient. New DC-powered conveyors (Intelligrated) save between 30–70% of the electricity required by AC units, depending on volumes.

Instead of using belts, chains and conventional drive boxes, the conveyors feature small 24-volt DC motors built into the rollers. Each powered roller then drives other rollers in a conveyor zone that is 30 or 36 inches long.

'The DC conveyors saved the need for 147 drive motors,' explains Robert Burdick, facilities manager. 'Energy and maintenance costs far outweighed the capital costs.'

And the savings did not stop at installation. The system is designed to activate individual conveyor zones only when a product is present. At other times, the rollers shut off, which substantially reduces electrical needs and decreases noise levels.

The facility's sliding shoe shipping sorter also is designed to conserve energy and lessen noise, with use of DC motors.

'The sorter is so quiet that I can stand next to it and still have a cell phone conversation,' says Pace.

Another technology the new facility utilizes is Palm Pilots to track outbound shipments. Products are scanned using the Palm Pilots as they are loaded onto trailers. The information is then made available to customers through a secure Web site so that items can be tracked throughout the delivery process. This also makes the customers' receiving easier, as the information can act as an advance ship notice of expected product.

'We get reports every morning on our deliveries,' adds Pace.

Soon, managers will begin using other software to help them evaluate the slotting of products within the building. The system will also provide performance measurement tools that will aid in managing labor.

'We will gain even more productivity here then,' predicts Pace.

Click the icon to read how Apotex developed specific solutions for handling the pharmaceuticals it manufactures.