How CVS is Enhancing Efficiency With Robotics
Like many companies, CVS Pharmacy uses automation as a key element at one of its major US distribution centres.
The distribution centre, located in Hainesport, New Jersey, relies on a detailed supply chain automation system supported by both advanced logistics and inventory control.
Josh White, Chief Supply Chain and Logistics Officer for CVS Health explains his goal for the automation process: “The automation in use at our Hainesport, NJ facility is helping us get products to our stores more efficiently than ever before.
“The goal is to improve how accurately and efficiently we move products through our network so stores can operate with confidence and customers can get the items they want and need.”
Attributes of distribution centre
The New Jersey distribution centre utilises hundreds of robots who move products throughout the warehouse in an automated storage-and-retrieval system.
Once the robots retrieve the items, they are delivered to workstations and sorted for delivery to specific store locations.
Each item is labelled, stacked and prepared by automated systems. Automation systems also stack totes by weight, while robotic arms wrap each item, ensuring a seamless unpacking process upon delivery for store teams.
The centre has over 10,000 products including everyday health, beauty, and personal care items that are moved into reusable tote bags to prevent unnecessary handling. A portion of these items are available in CVS Pharmacy stores.
Specialised items, like pharmaceuticals or bulk shipments are handled through other areas within the distribution centre to make sure regulatory compliance is being met.
Each week, approximately two million items are processed at the distribution centre which is a major improvement before automation was implemented in 2023.
CVS Pharmacy has partnerships with tech companies AutoStore, Tompkins Robotics and Bastian Solutions to support the automation being used at the distribution centre.
Other areas of technology
Although technology is at the forefront of the New Jersey distribution centre, CVS Pharmacy still has 150 employees working at the site with plans for expansion over the next year.
Josh says shipments are paramount to the success of the distribution centre: “For our store teams, what matters most is knowing that shipments arrive as expected, are accurate, and are easy to work with. That reliability starts long before a truck reaches the store.”
Automation and technology doesn’t stop at the distribution centre. CVS Pharmacy also implements both elements in its Aetna and CVS Caremark businesses through its new partnership with Salesforce’s Agentforce Health.
CVS Pharmacy’s call centres utilise AI agents to provide information, allowing CVS employees to solve customer problems at a faster rate.
Pushpendu Pal, Senior Vice President and Chief Digital Technology Officer of CVS Health, supports the use of AI in the company’s call centres: "Our purpose is to simplify health care, one person, one family and one community at a time, which starts with building a more connected, compassionate and accessible health care experience during every interaction with our members.
“Through the responsible use of AI, we’re revolutionising health care, unlocking new levels of accessibility for our members, and empowering our colleagues to provide an even deeper, more engaged experience in every moment of a member’s journey.”
