Sigma Healthcare is a leading Australian full line wholesale and distribution business to community and hospital pharmacies. It has one of the largest pharmacy networks in Australia, including Amcal, Guardian, Discount Drug Stores and Pharmasave, with over 1,200 branded and independent pharmacies and an expanding presence in hospital pharmacy services.
Sigma takes very seriously its responsibility to ensure Australians have access to the full range of PBS medicines, regardless of where they live, and usually within 24 hours. To meet this challenge, Sigma’s supply chain and logistics infrastructure has to be world-class.
With this in mind, Sigma undertook an ambitious distribution network optimisation program to build five strategically placed greenfield, automated distribution centres (DCs), located in Berrinba QLD, Canning Vale WA, Pooraka SA, and the two largest in Truganina VIC and Kemps Creek NSW, teaming up with industrial property specialists, Qanstruct and Ahrens. Cutting-edge automation for the DCs would be provided by materials handling integrator Knapp, in the form of OSR shuttles, robotic picking, and Goods-to-Person (GTP) systems.
To complete the DCs, Sigma went to market with a tender seeking a storage solution partner who had quality racking and storage equipment, security of supply, and a team that could be trusted to deliver to promise.
Peter Petito, Sigma’s Senior Program Manager, said: “It was crucial to us to have a storage partner who offered quality racking and service reliability, and would deliver the projects on time. We also needed a partner who could work collaboratively with our automation integrator and builders, across the sites in different states.”
“In 2018, we selected stow as our storage equipment partner based on Stow’s quality, service and price. And having worked with Stow in the past, I had added confidence that they could meet the brief,” continued Peter.
stow Australia is a leading supplier of storage solutions, and is recognised for the quality and safety of its European rack, and the experience and expertise of its installation teams.
stow undertook to commence installation into the largest DC, Kemps Creek, in January 2019, in Pooraka in April 2019, and in Truganina in June 2020. But no one predicted what would happen in 2020…
A safe and secure solution
Many pharmaceutical products need to be stored in secure locations either for safety (such as aerosols) or because they are restricted drugs. This elevates the importance and complexity of the storage system. Along with this safety component, Sigma’s storage solution also needed to work seamlessly with Knapp’s GTP system.
stow designed a tailored storage solution for each Sigma DC, that included selective racking, carton live storage (CLS) pallet live storage (PLS), secure cages, safety fencing, mesh decks, and upright protectors.
Forty thousand of stow’s high-quality selective racking, across the three DCs, would offer easy pallet access via forklift. The NSW DC would accommodate 25,000 pallets alone.
The handling of fast-moving, full case products was accomplished with 372 beds of stow CLS, with 200 beds in Kemps Creek.
Pallet handling was accomplished through 200 lanes of stow PLS, 88 of the lanes in Kemps Creek. Crucially, the PLS had to be carefully positioned to feed product into the GTP system.
stow rack protection, safety fencing and secure cages were installed to ensure the safe storage of products, the safety of Sigma personnel, and in the case of stow’s upright protectors, to reduce Sigma’s rack damage costs.
On time delivery despite the pandemic
While the first four DCs were delivered before COVID-19 hit Australia, the Truganina DC was caught up in Melbourne’s second virus wave and its inherent business operating restrictions.
Renowned for the quality of its project management, stow’s in-house, tertiary-qualified project managers were key to driving and ensuring the desired outcomes for its client, despite the challenges thrown up by the virus.
COVID-19 accommodations performed by stow’s team included social distancing, PPE, and sanitising frequent handling touch points including scissor lifts and forklifts. The team also adhered to Sigma’s internal COVID-9 safety protocols.
Peter Petito was complementary about stow’s handling of the pandemic throughout the project: “stow delivered our Truganina DC on time and in full despite tough COVID restrictions. In fact, COVID-19 had zero impact on the delivery timeline. The entire stow team, from the top down, was very accommodating in all facets of the design and installation. We had one COVID case on site at Truganina, but stow just worked with less people to accommodate safety and social distancing rules. As soon as one of our team tested positive, stow had every member of its team tested. In fact, Paul (Johnson), stow’s MD, had visited site the day before the positive test, and he immediately got tested too.”
All Sigma Healthcare’s storage solutions were delivered on time and in full, Kemps Creek and Pooraka simultaneously on 30 July 2019, and the pandemic-impacted Truganina on 26 August 2020 – still within the promised two-month timeframe.
Martin Bates, stow’s National Sales Manager, said: “It has been our pleasure working with both Knapp and Sigma on the national rollout of Sigma’s DCs. The OSR shuttle, robotic picking and GTP solution provided by Knapp is cutting edge technology, meaning the success of this project was dependent upon our project team working very closely onsite with Knapp to ensure each stage was constructed sequentially, to provide continuity of program and success of the ultimate solution.”
“Peter and the Sigma team were a pleasure to deal with. We look forward to the sites delivering ongoing efficiency and value to Sigma Healthcare and its customers for many years to come,” continued Martin.
Reflecting on his experience during Sigma’s ambitious DC rollout, Peter Petito said: “Nothing was too much trouble for stow and they were comfortable working through any challenges. They didn’t mess around, working efficiently and safely to support the entire project. We now have quality, safe storage solutions in our new DCs. I’d happily work with stow again in the future.”
