Kiva Systems Chosen By Walgreens To Double Distribution Center Capacity
Kiva Systems (www.kivasystems.com), a developer of game-changing robotic solutions for the distribution and order fulfillment industry, announced that Walgreens has agreed to expand the Kiva system in its Mt. Vernon, Illinois facility for the third time since its initial deployment in 2007. A key motivation for choosing Kiva for expansion of the Mt. Vernon facility was Kiva's productivity advantage over the existing conveyor system.
Walgreens uses the Kiva Mobile Fulfillment System (MFS) to store inventory and pick replenishment orders for its retail stores. Walgreens operates nearly 6,700 stores.
Walgreens is using the current expansion to both double the capacity of their Mt. Vernon distribution center and convert many of their traditional conveyor-based zone picking areas into Kiva zones. This expanded system puts nearly 1,000 mobile robots under a single roof.
Uncertainty about the direction of the economy was also an important factor in the decision to add more Kiva order fulfillment equipment. Easy scalability of the Kiva MFS makes the expansion quick and low risk. The inherently portable nature of the mobile fulfillment solution enables Walgreens to expand Mt. Vernon facility now, yet retain the option to easily redeploy the system to a different location if economic factors change.
Kiva's innovative approach to order fulfillment uses hundreds of mobile robotic drive units that bring inventory directly to workers, allowing easy and efficient access to all inventory items at all times. Elimination of operator walking and waiting enables worker productivity that is two to four times higher than with other automated systems. What's more, because all the system components are mobile and modular, a Kiva-equipped distribution center has unprecedented flexibility when adding new products or expanding throughput-without disrupting ongoing operations.
"Productivity metrics from previous rollouts far exceeded Walgreens' specifications for pick rate, accuracy, cycle time, tote utilization, and installation time," said Mick Mountz, CEO of Kiva. "By doubling capacity we expect Walgreens to quickly achieve an extraordinary new level of strategic competitive advantage and productivity."
SOURCE: Kiva Systems