Walgreens Boots Alliance (NASDAQ:WBA) is doubling down on automation, with plans to expand the number of retail stores serviced by its micro-fulfillment centers, CNBC reported.
Micro-fulfillment centers use robots to fill prescriptions for patients, freeing up time for pharmacy staff to perform more clinical services, like vaccinations and testing.
These centers were first opened in 2021, but expansion was paused in 2023 to improve performance. The company is now ready to expand after more than a year of making upgrades.
Walgreens' (NASDAQ:WBA) target is for its 11 micro-fulfillment centers to serve over 5,000 stores by the end of the year, compared to 4,800 in February and 4,300 in October 2023. As of February, the micro-fulfillment centers on average handled 40% of the prescription volume at supported stores.
These centers have generated around $500M in savings to date by cutting excess inventory and boosting efficiency, Kayla Heffington, Walgreens' (WBA) pharmacy operating model vice president, told CNBC. She added that prescription volume has increased by 126% Y/Y.
Walgreens (WBA) is set to go private in a ~$10B deal with Sycamore Partners, which is expected to be completed by the end of the year.
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