500% Inventory Capacity Increase for South West Healthcare

Australian South West Healthcare (SWH), Victoria’s largest sub-regional health service relocated to a new Regional Logistics Distribution Centre (RLDC) where they chose to implement an automated storage and retrieval system from AutoStore. The health service needed to replace manual processes, improve accuracy, and improve space usage.

The AutoStore system, empowered by Dematic, makes it possible for SWH to store up to six weeks of high-usage medical supplies and reduce fulfillment times. It also allowed them to increase SKU holding capacity, process orders more quickly, and streamline medical supply distribution across 14 healthcare sites to meet growing regional demand.

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The Challenge: Space Constraints and Slow Turnaround Times

South West Healthcare’s manual distribution centre was feeling the strain of servicing 14 healthcare facilities across western Victoria. The outdated system faced space constraints, forcing staff to operate with just one week’s worth of medical inventory, a precarious margin that risked stock shortages during emergencies.

Manual picking processes led to delivery delays, and storage layouts used too much floor space. With regional healthcare demand growing steadily, SWH needed a solution that could address slow fulfillment, inventory inaccuracies, and wasted space, while also scaling easily to meet future needs.

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The Solution: A Fully Automated Warehouse with AutoStore

AutoStore’s automated storage and retrieval system addressed SWH’s challenges with:

• High-density storage: Fitting 6,500 Bins in a compact Grid improves the RLDC’s space usage.
• Goods-to-Person (GTP) Ports: Walking time and picking labor is slashed.
• Technology integration: Automated order flow from SWH’s existing platform to AutoStore.
• Scalability: Additional Robots and Bins can be added as demand grows, without operational disruption.

The system addresses many of the core challenges experienced at the old facility and introduces new improvements in efficiency, speed, and accuracy.

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Key Benefits: Faster Order Fulfillment and Scalable Infrastructure

Automation has brought improvements in storage capacity, with a 500% increase in inventory storage (maintaining six to eight weeks instead of just one week of medical supplies). The high-density Grid optimizes limited floor space, and the automated system ensures real-time order accuracy. The ergonomic picking stations eliminate unnecessary walking and reduce physical strain on staff.

Importantly, the system's design provides scalability to accommodate growing regional healthcare needs while maintaining order accuracy for time-sensitive medical deliveries. These benefits have improved operations and provided additional reliability for patient care across 14 healthcare facilities.

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AutoStore’s Impact

The RLDC’s 2023 opening marked a milestone in SWH’s production ability. AutoStore’s flexibility ensures the system can grow alongside regional healthcare needs, setting standards for automated medical logistics in Australia.

Project Specifications

• Implementation type: Greenfield
• Robots: 10 R5 Robots
• Workstations (Ports): 3 CarouselPorts
• Bins: 6,500 Bins
• Warehouse Management System: Oracle WMS
• Integrated technology: ColbyRACK
• Integration partner: Dematic

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