PharmaCare boosts ANZ warehouse efficiency with WMS revamp

PharmaCare has overhauled its Australia and New Zealand distribution operations after rolling out Manhattan Associates' SCALE warehouse management system across its distribution centre network. It reports faster receiving, higher pick rates and more automated compliance processes.

The change cut receiving workflow time by close to 25% and lifted daily pick rates by 20% at its Warriewood facility. It also introduced automated processes aligned with Therapeutic Goods Administration (TGA) licensing requirements.

PharmaCare manages more than 25 brands, including Nature's Way and Bioglan, and distributes more than 1,000 products across pharmacy, grocery and export channels. Its business has grown around sixfold since 2009, increasing pressure on warehouse systems and processes.

That expansion left PharmaCare running multiple systems for radio frequency networks, voice picking, conveyor control and SSCC labelling, creating manual steps and data re-entry across receiving and outbound workflows.

"We were dealing with multiple systems that didn't talk to each other, manual data entry for hundreds of pallets a day, and outdated workflows that made even simple tasks complex," said Craig Dunlop, Head of Distribution and Logistics at PharmaCare.

"As we grew, it became harder to manage compliance, throughput and accuracy. We knew we needed a single WMS that could bring everything together and prepare us for the next phase of automation," he said.

System consolidation

After assessing several providers, PharmaCare selected Manhattan SCALE as its regional warehouse management system. The platform provides real-time inventory visibility, supports batch and expiry traceability, and combines SSCC labelling and electronic invoicing in a single environment.

PharmaCare said the deployment reduced reliance on on-premise maintenance and multiple point-to-point integrations, lowering complexity and enabling ongoing updates.

The project also changed processes across PharmaCare's TGA-licensed distribution network. A two-step receiving and quality release workflow moved to a single electronic process, reducing receiving and equipment time by close to 25% and shifting staff time away from administrative tasks, according to the companies.

Shelf-life controls

A new Minimum Life on Receipt (MLOR) allocation program was included in the implementation. It enforces shelf-life requirements on outbound orders and prevents stock that does not meet customer requirements from being allocated and shipped.

PharmaCare said the change eliminated rejected shipments and reduced follow-on work tied to returns, credits and re-shipment. It also said the new process freed up the equivalent of 1.5 full-time employees previously used for manual checking across office and warehouse teams.

"The MLOR functionality has been a game-changer," Dunlop said.

"Before Manhattan, we were manually managing expiry and shelf-life windows, which was open to human error. Now, the system automatically prevents non-compliant stock from leaving the DC. It's reduced returns, improved customer confidence, and given us complete peace of mind," he said.

Operational metrics

PharmaCare reported measurable gains within six months of going live. At Warriewood, daily pick rates in its pharmacy voice-picking conveyor operation increased from 10,000 to 12,000 picks per shift, while staffing levels stayed the same.

The operation also moved to automated SSCC labelling and electronic invoicing, improving accuracy and reducing manual keying. PharmaCare said these changes improved the flow of goods through conveyor systems.

"With Manhattan, processes like receiving, quality assurance, and labelling now flow seamlessly, giving teams real-time visibility and freeing them to focus on higher-value tasks rather than repetitive administration," said Raghav Sibal, Vice President APAC at Manhattan Associates.

"PharmaCare's journey is a great example of how technology and people can evolve together," he said.

The project also consolidated three legacy labelling systems into a single platform, removing manual entry of batch and expiry information. PharmaCare said the change enabled First-Expiry, First-Out processing across customers and channels.

"We see Manhattan Associates as a long-term partner," Dunlop said. "The system has already exceeded expectations, but more importantly, it's given us a foundation to keep improving. We're operating faster, with greater accuracy and confidence than ever before."

PharmaCare said the system provides a base for further changes in warehouse automation and distribution processes across its ANZ network.