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Largest Automated Healthcare Distribution Center Opens in Taiwan

In a groundbreaking achievement, the largest automated healthcare facility in Taiwan has secured prestigious certifications, setting an unparalleled standard in quality and innovation.

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Business Units

Healthcare

Services

Distribution and logistics

Markets

Taiwan

DKSH’s largest automated healthcare facility in Taiwan received the prestigious certifications for Good Distribution Practices from the Ministry of Health and Welfare in Taiwan.

This recognition underscores its commitment to quality standards. The facility boasts advanced automated features, including an automated storage and retrieval system, an autonomous case-handling robot system, and cutting-edge paperless processing technology.

Largest Automated Healthcare Distribution Center Opens in Taiwan

Challenge

Before the implementation of the automated distribution center (OP1), order tracking relied on manually distributed picklists, which followed a sequential processing approach throughout the fulfillment processes.

The DKSH team needed to identify all potential fulfillment scenarios and articulate each possibility as a set of algorithms for automation vendors to implement.

Approach

The adoption of Good-to-Person technologies such as storage and retrieval system, case-handling robot system, and Good-to-Person picking station, has reduced operator movements by around 90 percent. They have also enhanced pick accuracy and pick cycle efficiency.

A conveyor auto-routing system has streamlined VAS and packing processes, thereby extending optimization to delivery route sorting for improved transportation efficiency.

Additionally, GMP VAS cells in OP1 adhere to cleanroom standards, featuring air pressure differentials to minimize pollutants and ensure a clean VAS area.

Result

By integrating WMS intelligence and warehouse automation systems, DKSH has optimized order fulfillment processes, minimizing reliance on human decision-making, and significantly reducing turnaround time and labor requirements.

The transformation has yielded measurable benefits, including a 4.5 times increase in goods pick-up efficiency, a remarkable inventory accuracy of 99.9 percent, a 70-hour reduction and savings of 140,000 sheets in physical paper printing costs, and a decrease of 276 hours in worker physical movement due to the adoption of automation.

The distribution center will help reduce our impact on the climate and achieve the target of cutting greenhouse gas emissions by 65 percent in our operations by 2025. We aim to become climate-neutral by 2030.

DKSH Business Unit Healthcare

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