OM in the News: The Robotic Pharmacists

“Walgreens is turning to robots to ease workloads at drugstores as it grapples with a nationwide shortage of pharmacists and pharmacist technicians,” reports The Wall Street Journal (Oct. 3, 2022).  The nation’s second-largest pharmacy chain is setting up a network of automated, centralized drug-filling centers that could fill a city block. Rows of yellow robotic arms bend and rotate as they sort and bottle multicolored pills, sending them down conveyor belts. The setup cuts pharmacist workloads by at least 25% and will save Walgreens more than $1 billion a year.

Walgreens has opened 8 automated drug-filling centers serving 1,800 stores and plans to operate 24 by 2025. This one, near Dallas, fills 35,000 prescriptions a day, serving 500 stores in the South.

The ultimate goal: give pharmacists more time to provide medical services such as vaccinations, patient outreach and prescribing of some medications. Those services are a relatively new and growing revenue stream for drugstores, which are increasingly able to bill insurers for some clinical services.

Covid-19 increased the demands on pharmacies as they expanded into testing and vaccinations, putting pressure on staff and creating a shortfall of pharmacists that many chains have struggled to fill. Walgreens has reduced pharmacy hours at a third of its nearly 9,000 U.S. stores, and in some markets is offering signing bonuses of $75,000 to fill pharmacist jobs.

Prescriptions that are time-sensitive or for controlled substances are still filled by pharmacists in stores. Those filled at the automated centers are delivered to stores alongside shipments of medications that are sorted and filled in stores.

For locations with healthier staffing levels, pharmacists are able to provide an array of medical services that bring in revenue and improve patient health, namely encouraging customers with chronic conditions to better comply with their medical regimens. The company aims to fill 40% to 50% of all prescriptions at centralized sites.

Classroom discussion questions:

  1. How else can robots be used to streamline OM functions in stores?
  2. Table 7.3, in your Heizer/Render/Munson chapter on Process Strategies, provides other examples of robotic use in the service sector. Discuss four examples.

OM in the News: FedEx’s Delivery Robot

The new FedEx Same-Day Bot can climb stairs to deliver packages.

FedEx will soon start testing robots that could make same-day deliveries of medicine, pizzas and other items to consumers’ homes, pushing the parcel-delivery giant into a new market competing against startups like Postmates that use humans for rapid deliveries.

The project makes FedEx the latest in a growing stream of companies to test automated, unmanned machines to make deliveries, writes The Wall Street Journal (Feb. 28, 2019). Amazon and UPS have demonstrated drones to deliver packages in certain areas, and Amazon has displayed a rolling robot it calls Scout in trials on city streets. Grocery chain Kroger recently showed off an unmanned vehicle that can deliver groceries in certain markets, and several robotics startups are testing autonomous delivery robots that use sensors and cameras to navigate sidewalks for short trips, including lunch deliveries to crowded Beijing office buildings.

But on-demand delivery companies such as Deliv and DoorDash that make point-to-point trips carrying food or e-commerce purchases typically rely on armies of couriers who travel by car, scooter or bicycle. The FedEx “SameDay Bot” is starting off with tests planned in the corporation’s hometown of Memphis. AutoZone, Lowe’s, Pizza Hut, Target, Walgreens and Walmart are looking at using the FedEx bot. Retailers envision having robot fleets ready to make same-day deliveries that would be branded with the retailer’s logo and modified for different uses– a cooler for grocery, a heater for pizza.

“The economics of a point-to-point delivery versus a planned or even an overnight delivery, they’re just very different,” says a FedEx exec. “Eventually, we believe the majority of same-day, point-to-point will be delivered using the FedEx SameDay Bot.”

Your students will enjoy the 30 second video embedded in the article.

Classroom discussion questions:

  1. What makes delivery with the robot less than optimal?
  2. What are the robot’s main advantages?