To meet the growing performance requirements in intralogistics, the semi-state-owned company built a new logistics centre with automated picking in Shoham. When it comes to materials handling technology, the healthcare provider relies on an automated material flow system from Dematic. The specialist for intralogistics and logistics automation developed a customised multishuttle solution and also impresses with its comprehensive service.

The healthcare system in Israel differs fundamentally from other national systems. Health insurance companies not only insure their members, but also offer a wide range of other services in the health sector. 

For example, Clalit, Israel’s largest health insurance company, has a nationwide network of 16 hospitals, around 1,300 clinics and several hundred specialist institutes, laboratories and pharmacies.

In the past, the logistics distribution centre in Tel Aviv was responsible for supplying medicines to the entire south and central parts of Israel. However, due to poor transport connections, frequent traffic jams and manual transport, bottlenecks occurred time and again.

Clalit therefore decided to build a new facility in Shoham, about 25 kilometers east of Tel Aviv. From there, both of the country’s major cities, Tel Aviv and Jerusalem, can be reached within 30 minutes. Clalit focused on automated picking and optimal material flow within the warehouse to ensure reliable supply to the healthcare facilities. To this end, Clalit formulated high demands on the reliability and performance of the system in the tender and chose Dematic at the end of the selection process.

Dematic convinced Clalit with a coherent material flow concept consisting of the Dematic Multishuttle® 2 system as well as conveyor technology and software solutions from a single source.

The customised intralogistics solution for the new logistics centre takes care of the storage and retrieval of pharmaceutical products as well as the handling of plastic containers and cartons, and also automatically coordinates all processes between the warehouse, order picking and order compilation. Toxic pharmaceuticals are also stored and picked. 

The system not only convinces with the automation of the processes, but also with its high flexibility, absolute reliability and freedom from errors in order picking. In the new logistics centre, up to 40,000 picks per shift are now possible with the Dematic Multishuttle 2 system – a significant increase in performance compared to the previous manual order picking. The total cost of the material flow system for Clalit is approximately 20 million euros.

The new building extends over three floors. The Dematic Multishuttle 2 system consists of the racking, shuttle and control components. The storage area is divided into a temperature-controlled section with five aisles and 19 shelving levels and a refrigerated area (2˚ - 4˚ Celsius) with two aisles and 14 control levels. 

Each level has a shuttle that automatically accesses the item to be retrieved and transfers it to the conveyor system via the vertical lifts. From there, the goods are transported to one of the 42 picking stations. 

Clalit employees then prepare the articles for dispatch at the four goods-to-person stations in the refrigerated area, the eight automatic RapidPick stations, ten Pick-to-Light stations for picking pallets and 20 for picking totes. Once the picker confirms the picked quantity, the quantity and weight are validated by a checkweigher and the new item quantity is adjusted in the warehouse management system.

After the order has been compiled, the conveyor system transports the articles to the quality management department for another check in accordance with the high requirements for pharmaceutical products and from there to the packaging station. Here, the cartons are automatically sealed, labelled and transported in-time to one of the 27 shipping lanes. 

In addition, it is possible to pick orders before dispatch and store them temporarily. The empty containers are then returned to the goods receiving area, and the opened containers are automatically returned to storage.

An important success factor in the project planning /implementation of the complex plant was the early involvement of the Dematic service team, which supported Clalit in commissioning the plant on site even before go-live. 

Dematic then put together a specific all-round service package for Clalit, ranging from complete operational support to hotline support, maintenance and the supply of individual spare parts.

The services are initially agreed for the next five years. The plant has to deliver top performance day after day. With the individual support package, Dematic guarantees full performance and thus ensures optimum maintenance of the plant.

For this purpose, five experts from the Dematic service team, who also accompanied the launch support, are available around the clock. In addition, they continuously train the Clalit employees on the functioning and operation of the system and carry out any maintenance and repairs that may be required. The training of new Clalit employees and getting them used to the system and the automatic processes turned out to be the biggest challenge, because they first have to understand the material flows.

The agreed goal of the service is to achieve an availability of the installation of 98 percent. If the value falls below 98 percent, Dematic compensates its customers. Conversely, Dematic receives a bonus at 99 percent.  

For Dematic, on-site customer support, also with regard to developments and improvements to the system, is always a top priority. Accordingly, the entire system is permanently monitored. The key performance indicators and reports provide Clalit with a meaningful overview of the current status of the installation as well as possible potential for improvement in the warehouse, so that the parameters in the software can be adjusted if necessary. Dematic uses its own analysis functions for this purpose.

Since the go-live the system has been running smoothly and Dematic is continuously working with Clalit on further adjustments and improvements to the system. Just in case, Dematic manages a large stock of the customer’s spare parts in order to be able to react immediately to material fatigue and to ensure spare parts availability.

Dematic is thus able to supply high-quality original spare parts for the maintenance and servicing of the system quickly and as required. Since failures are not tolerable for either Clalit or Dematic, a permanent team of experts from Dematic Services is on duty at the installation. 

From Clalit’s point of view, the cooperation was also a complete success. The customer is extremely satisfied with the performance of the installation. For example, with the help of Dematic, they were able to take over the entire medication stock within four months instead of the planned 12 months. In addition, the synchronisation and acceptance of the system was carried out in a very professional manner.