Walgreens has expanded split-case picking in its Mt. Vernon, Ill., distribution center by implementing a robotic picking system for replenishing store inventory. This is a switch from the pick-to-light system Walgreens had been using.

Walgreens selected Kiva Systems' Mobile Fulfillment System and, according to Kiva, shipped its first order totes six weeks after installation began.

“We moved forward with the installation of this system because we were interested in meeting needs from our continued store growth and the need to continue expanding our distribution capacity to support this growth,” says Michael Polzin, with Walgreens corporate communications. “We'll open 550 new stores in fiscal 2008 and with that comes the need for more distribution capacity.”

Polzin also told Modern Walgreens expects to handle more merchandise with the same amount of staff, and that the system will enable expansion if business conditions demand more capacity.

This Walgreens DC is using Kiva's ItemFetch split-case picking system with the OrderFetch shipping sorter. Mobile robots bring inventory to employees to be picked to totes in the specific sequence required for restocking of store shelves. Testing has shown the potential for doubling pick rates in this application.

Kiva Systems founder and CEO Mick Mountz says Walgreens is the largest split-case picking operator in the world. The company has already achieved the industry's highest levels of productivity, he says, and the Kiva system opens a strategic opportunity to further increase productivity.

Read Modern's story on how Staples is using the Kiva technology.