A robotic, not a human pharmacist, could also be filling your prescription at Walgreens. And there is about to be much more of them.
Walgreens advised CNBC on Sunday that it needs to have extra of its pharmacies ship prescriptions to one in every of its 11 micro-fulfillment facilities, or hubs that use robotic know-how to fill affected person prescriptions.
The aim is to have the services deal with prescriptions for five,000 pharmacies earlier than the yr ends, up from 4,800 shops in February and 4,300 shops in October 2023.
As of February, the facilities took care of 40% of prescriptions for supported pharmacies, amounting to 16 million orders stuffed every month.
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The transfer to increase automation arrives as Walgreens readies itself to go personal in a $10 billion deal. The pharmacy chain introduced in March that it had agreed to be acquired by personal fairness agency Sycamore Companions, with the deal anticipated to shut within the fourth quarter of the yr.
How does a micro-fulfillment heart work?
When a Walgreens pharmacy supported by a middle receives a prescription order, the system decides if it must be stuffed by pharmacists at that location or despatched to the middle. The choice usually comes all the way down to timeliness: Facilities normally deal with refills that do not require speedy pickup.
The services then use robots, conveyor belts, and scanners to fill prescriptions precisely. Whereas pharmacists fill prescriptions by hand at shops, robots dispense prescriptions down a fastidiously managed meeting line at facilities.
There’s nonetheless some human involvement on the services, although. A group of pharmacists and pharmacy technicians works behind the scenes on the facilities to make sure that the proper drugs attain the right bottles.
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Robotic facilities drive price financial savings for Walgreens
The micro-fulfillment services have had a noticeable affect on Walgreens for the reason that first one opened in early 2021. Kayla Heffington, Walgreens’ pharmacy vp, advised CNBC that the facilities have helped Walgreens save $500 million up to now and allowed its pharmacists to spend extra time with sufferers. She stated that the facilities allowed Walgreens to enhance prescription quantity by 126% year-over-year, whereas concurrently bringing down prices by near 13%.
Walgreens is now filling greater than 170 million prescriptions per yr, with the aim of elevating that complete to 180 million or larger with the assistance of the facilities, she said.
Rick Gates, Walgreens’ chief pharmacy officer, added that the facilities give Walgreens “much more flexibility to carry down prices.”
“Proper now, they’re the spine to essentially assist us offset a few of the workload in our shops,” Gates advised CNBC.
He famous that the services give Walgreens a bonus over unbiased pharmacies and different rivals that lack robotic prescription achievement.
Associated: ‘Changes Are Imminent’: Walgreens to Shutter a ‘Significant’ Number of Stores
Amazon Pharmacy has its personal automated pharmacy achievement facilities that goal to carry medicines to clients in two days or much less on common.
Firms like Walmart, Kroger, and Albertsons every have micro-fulfillment facilities that course of objects like groceries, however none have publicly disclosed prescription achievement facilities.
CVS has additionally applied automation in its provide chain, although not publicly for its pharmacies. At CVS’s Lumberton, New Jersey, distribution heart, 152 robots work collectively to course of 1.9 million merchandise per week.
Walgreens was the second biggest pharmacy within the U.S. by pharmaceuticals market share in 2024, proper after CVS.
A robotic, not a human pharmacist, could also be filling your prescription at Walgreens. And there is about to be much more of them.
Walgreens advised CNBC on Sunday that it needs to have extra of its pharmacies ship prescriptions to one in every of its 11 micro-fulfillment facilities, or hubs that use robotic know-how to fill affected person prescriptions.
The aim is to have the services deal with prescriptions for five,000 pharmacies earlier than the yr ends, up from 4,800 shops in February and 4,300 shops in October 2023.
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