It isn't often that a distribution system has a Latin name. But the one that CVS built in Ennis, Texas sure does.

DeXma. That's short for Deus ex machina or a god from a machine. And Kevin Smith, senior vice president of supply chain and logistics at CVS, is quite proud of how well the name fits the facility.

Materials handling automation is the centerpiece of this 400,000 square foot DC. That doesn't mean there isn't manual handling because there is at strategic points. But automation is what makes it possible to pick items for each store in shelf sequence.

"One of our primary objectives here is to improve delivery to our stores," says Smith. "Because of the automation in Ennis, stores no longer have to spend wasted time organizing what we've shipped to them. It's already done for them. All they have to do is put it on the shelves." Unloading at stores typically took 2 hours but now is only a 20 minute job.

As the layout below shows, multiple automated storage and retrieval systems (AS/RS) are in the facility. They are used in both the piece picking and case picking systems as well as the order consolidation buffer (Witron).

Automation is also critical to another key objective—improving DC efficiency. It reduces the number of times that people handle items, explains Rick Hoffman, director of distribution in Ennis. In addition, automation has reduced the order cycle for store deliveries by one full day.

Total cost of the building and materials handling equipment and systems is $70 million, says Smith. Payback time is greatly accelerated by the combined DC and store productivity gains.

"Every dollar we save in the DC and for the stores goes straight to the bottom line of the company," says Smith.

Along with vice president of logistics Ron Link and director of process and technology Tom McHugh, Smith has devised a plan for the company that makes Ennis both part of a bigger picture and a pioneer.

In the bigger picture, CVS is realigning its DCs to accommodate its acquisition of the 1,200 plus Eckerd's stores. The Ennis DC, which was under construction prior to that acquisition, will absorb all of the volume from Eckerd's DC in Garland, Texas.

In addition, CVS is in the process of building a network of DCs with a particular profile that optimizes the cost of delivery to stores. Ennis is the newest DC in that network, and the first to use such a high level of automation.

As Link explains, the intent is to keep DCs smaller than 500,000 square feet. For every 100,000 square feet larger than that, the CVS team says that productivity drops off 10–12%. Longer travel distances are a big part of that decline. In addition, smaller buildings require less land and are less costly to both erect and operate.

Labor levels are also a concern. "We'll always need people in our DCs. But the idea is to minimize the number of people and keep them fully engaged in what's happening day to day," says Smith. He estimates that Ennis requires 30% fewer people than a conventional DC.

That said, the materials handling automation used in Ennis is the model for future DCs, says Smith. "Any new DC in the future will likely use this technology. And we will also look at using it to retrofit existing facilities," he adds. CVS is currently installing a nearly identical system at a new DC in Vero Beach, Fla.

Automation is not new to CVS. Over the years, the company has used automated materials handling at its own facilities. In addition, CVS has acquired several other companies using automation. "We have had a chance to see what did and didn't work well," says McHugh.

This particular system makes extensive use of AS/RS to store then stage totes (mini-load) and cases of inventory (unit load) in the dynamic picking system, high bay storage and the module picking system. In addition, the order consolidation buffer uses mini-load AS/RS too.

Item picking in the dynamic picking system is guided by pick-to-light, and has a throughput over 1.2 million items a day. This goods-to-person approach is in a tight footprint, minimizing picker travel distances. Totes are filled with items in the specific store aisle sequence for that order.

In the module picking system, pallet loads of cases are stored, and delivered to workers for case picking, greatly reducing travel time and improving productivity. Case selection is directed by pick-to-light. Workers pick cases onto rolling carts.

When it comes time to assemble an order for a store, totes are called out of the order consolidation buffer in the required aisle sequence. Totes are then automatically stacked and secured on dollies for staging along with rolling carts of cases in the order assembly area.

Just as CVS worked hard to make best use of the DC's footprint, it did the same with the totes, dollies and carts. All were sized to fill out the truck from side to side, increasing trailer cube utilization by 10%.

"This whole system is an integrated solution," says Link. "We didn't invent anything here. But it is the first time that all of these components have been brought together in a single facility."

According to Hoffman, the DC, which has been shipping product for almost a year, is now shipping to nearly 300 stores in four states. And when the DC is moving along at capacity, it will be shipping to more than 425 stores with unprecedented productivity among DCs at the company.

Or as Smith says, "This may not be the sexy part of the business but it is certainly important." He adds, "finis coronet opus." The ending crowns the walk. "And this work is really paying off for CVS," says Smith.