Chongqing Pharmaceutical Group

Site consolidation and automation delivers shorter pharmaceutical shipping lead times

Chongqing Pharmaceutical Group built the Heping Logistics Center in Chongqing to (1) expand its distribution network in western China and (2) to improve it distribution capabilities. Combining a range of automated material handling equipment, including automated warehouses and sorting systems, the company’s decision to automate has improved picking operations, shipping lead times, and operational hours, all despite an increase in volume handled – up to 25,000 orders per day.

Chongqing Pharmaceutical Group is primarily engaged in the storage and distribution of pharmaceutical products. In April 2016, it established its Heping Logistics Center, a multistorey structure with a footprint of 16,167 m2 and a total floor space of 58,000 m2. Under a new logistics strategy, the center was equipped extensively with automated systems to meet expanding market needs and improve work efficiency. The facility predominantly supplies pharmaceutical products to hospitals, pharmacies, and clinics in Chongqing.

Logistics flows on site change depending on how goods enter the facility – pallet loads or cases. Higher volume incoming goods are placed on pallets and stored in the unit load AS/RS, while smaller volume goods are stored directly in the mini load AS/RS or in a conventional racking area. The WCS automatically triggers replenishment from the AS/RS to the pick-to-light picking area as needed to avoid any interruptions in order picking.

Goods to be shipped in pallet quantities from the unit load AS/RS are transferred directly from the second floor to the first floor via lifters. Cases set for shipping are retrieved from the mini load system and transferred from the second floor to the Shuttle Rack M, a high-throughput case buffer and sorting system, or directly to the Surfing Sorter, a high-speed slide-shoe sorting system on the first floor.

Piece-picked goods are collected in containers using a pick-to-light system. When the goods from each area have been consolidated into a picking box, they are transported to the inspection and packing area. When inspection and packing are complete, the packed cases are temporarily stored in the Shuttle Rack M until the designated sorter chute is available, and then released to a high-speed automated sorting system, the Surfing Sorter, which diverts the cases to the proper chute assigned to the end-user.