Aster Pharmacy Achieves Scalable Growth with the Largest Automated Fulfilment Solution of its Kind in the UAE from Dematic
Aster Pharmacy, part of the larger Aster DM Healthcare network, has been a prominent player in the healthcare and pharmaceutical industry for over 37 years. Headquartered in the United Arab Emirates (UAE), Aster Pharmacy is committed to delivering end-to-end healthcare, encompassing primary, secondary, and tertiary care.
As the business expanded, Aster Pharmacy faced the challenge of scaling its operations, driven by increasing demand in the UAE, Saudi Arabia, and other Gulf Cooperation Council (GCC) countries, as well as a significant push in its e-commerce operations.
“We are targeting to do around 20,000 orders e-commerce every single day in three years’ time from now,” explained Mr N.S. Balasubramanian, CEO at Aster Retail. “The most important aspect to support this, as a very key pillar, would be of course the supply chain.”
To support this growth, Aster Pharmacy turned to Dematic for a highly automated, scalable solution that would optimise the company’s fulfilment processes and support future plans.
Fulfilment Challenges Undermine Capacity Expansion
Aster Pharmacy’s existing fulfilment operations were primarily manual, which posed challenges in handling the growing volume of orders, particularly as the company set its sights on doubling its capacity within the next three to five years. With a 13,000-square-metre distribution centre catering to pharmacies, hospitals, and clinics across the region, Aster’s fulfilment centre handles 50 million units annually, including both inbound and outbound volumes. The operation covers more than 15,000 stock-keeping units (SKUs), shipping over 300,000 orders per week.
“We want to be able to scale our impact and be able to touch more lives,” explains Alisha Moopen, Managing Director & Group CEO for Aster DM Healthcare. “For us, the scalability of this vision requires technology to come and support us.”
Aster’s supply chain is critical to its operations, and the need for an advanced solution that would streamline processes, improve efficiency, and reduce costs became increasingly urgent.
“We needed a solution that would support the business in a scalable manner,” says Vamsikrishna, Head of Supply Chain Aster DM Healthcare. “Our goals were to improve overall DC efficiency, increase speed, and lower our costs, while maintaining high service levels for our customers.”
A Solution Designed for Business Growth
After conducting extensive due diligence and evaluating several solution providers, Aster Pharmacy chose Dematic to deploy the AutoStore™ solution. The system was designed to automate the manual picking process, dramatically improving efficiency while maintaining the accuracy and speed required to support Aster’s growing operations.
“We provided a solution based on the business problem to be solved and the return on investment,” explains Mithun Perinchery, Head of Sales, Middle East, Dematic. “The AutoStore™ system is built to pick up to 1,000 order lines per hour for outbound and 100 order lines inbound. The system allows storage of pharma products in multi-SKU bins with a pick pointer supporting ease of picking.”
The AutoStore™ system from Dematic consists of 17,250 bins, 33 robots, eight carousel ports for picking, and four ports for inbound goods. This solution, the largest of its kind in the UAE, enables the handling of up to 3,000 order lines per hour.
“It was a process with a lot of due diligence and evaluation,” Vamsikrishna explains. “We needed to choose the right solution and the right partner capable of executing it. Finally, AutoStore™, implemented by Dematic, met our needs and exceeded expectations.”
The AutoStore™ system from Dematic allows Aster Pharmacy to store pharmaceutical products in multi-SKU bins, facilitating faster and more efficient picking. The system also allows for better use of space, reducing the need for additional square footage, even as order volumes increase. The solution supports Aster’s aim of scaling its operations while maintaining operational flexibility.
Smooth System Integration Drives Fulfilment Efficiency
The implementation of the AutoStore™ system from Dematic was smooth and on schedule, ensuring minimal disruption to Aster’s operations. This achievement was made possible due to the close collaboration between Dematic and Aster Pharmacy’s teams, who worked together to develop a strong governance model and rigorous testing protocols.
“Working with Dematic was seamless,” says Vamsikrishna. “They have proven why they are leaders in the intralogistics field, and their unwavering support has been a key factor in our success.”
The transition to the new system also included comprehensive training for Aster’s staff, ensuring that the system would be used to its full potential from day one. Dematic provided ongoing support, including a combination of 24/7 remote and local service plans to ensure maximum system availability and fast response times.
Aster Pharmacy Increases Fulfilment Speed and Accuracy with AutoStore™
Since implementing the AutoStore™ system from Dematic, Aster Pharmacy has seen significant improvements in fulfilment speed, accuracy, and overall efficiency. The system processes up to 1,000 order lines per hour for outbound goods and 100 order lines for inbound goods. This level of automation has reduced manual labour, while the increased storage efficiency has allowed Aster to handle more orders without needing additional warehouse space.
“Seventy percent of our volumes are now picked using AutoStore™, which has dramatically increased our efficiency,” Vamsikrishna says. “The speed of fulfilment has improved, resulting in better service levels for our customers, while keeping costs low.”
The AutoStore™ system from Dematic has also enabled Aster to optimise its existing workforce. Instead of hiring additional staff to keep up with growing demand, the automated solution has allowed Aster to scale its operations without increasing labour costs.
“The increased storage efficiency meant that we needed less space to fulfil the same amount of business, and we were able to utilise our existing manpower while catering to our growing needs,” explains Vamsikrishna.
Aster’s long-term plans include further expansions within the UAE and into other GCC countries, as well as a significant e-commerce push. With the AutoStore™ solution in place, Aster is well-positioned to handle an anticipated 20,000 e-commerce orders per day within the next three years.
Looking to Future Growth
Aster Pharmacy is optimistic about its future growth, particularly with the robust support of Dematic’s technology. The collaboration between the two companies has laid the foundation for continued success, as Aster looks to double its operational capacity and scale its impact across the region.
“For us, it’s all about creating a better environment for better health,” says Moopen. “We are excited about new solutions in healthcare that help us implement better care for our patients. The AutoStore™ system from Dematic has been a critical part of that journey, helping us deliver life-changing medications and services to our customers quickly and accurately.”
As Aster continues to expand, Dematic will remain a key partner, supporting the company’s growth with advanced intralogistics solutions and unparalleled customer service. This partnership highlights the value of working with a solution provider that not only understands a company’s current needs but also has the vision and expertise to support its future ambitions.
“We have built a strong working relationship based on mutual trust. Dematic has been a fantastic partner, and we look forward to continuing this journey together as we expand our impact in the healthcare industry,” Vamsikrishna concludes.
