Breaking new ground with New Zealand’s first AutoStore

In a first for New Zealand’s logistics and pharmaceutical sectors, Douglas Pharmaceuticals has utilised Kardex to install the country’s first AutoStore™ system at its headquarters in Henderson, West Auckland. The leap into robot-powered automation is already redefining warehouse operations.

Driven by increasing demand for its health and wellness products and expanding export markets, Douglas found itself running out of space. As one of the largest pharmaceutical companies and a leading supplier by volume into New Zealand’s growing pharmacy channel, Douglas needed to expand its warehouse capabilities.

However, they didn’t want to relocate or compromise on operational efficiency, so Douglas turned to automation instead of extending its building or restructuring existing manual systems. AutoStore was the solution, thanks to its automated storage and retrieval system (AS/RS) powered by global intralogistics partner Kardex.

The system has transformed Douglas’s fulfilment model from the inside out, quadrupling picking speeds, boosting accuracy, and compressing storage requirements into a fraction of the original footprint.

“They looked at extending the building, which came in at about $2.7 million,” says Grant Smith, Director of Business Development – Kardex AutoStore for Australia and New Zealand.

“But a new operations lead asked the simple question: Are we really making the most of the space we already have? That’s what led them to AutoStore and the innovation Kardex offers. It’s a smart, scalable system that maximises every cubic metre.”

The result was a future-proofed warehouse operation that meets Douglas’s near-term growth targets while laying a flexible foundation for expansion.

Installed with minimal disruption alongside the existing facility, the new AutoStore system comprises approximately 6,500 bins arranged in a high-density grid, served by 13 autonomous robots and a series of ergonomic pick stations.

Items are retrieved and delivered directly to operators, streamlining the fulfilment process and eliminating common sources of human error.

“From day one, the technology just worked seamlessly,” says Mr Smith. “They’re now picking four times faster than before, with an error rate of just one in 10,000. And it’s not about replacing people. Douglas has always been a very people-oriented business. This was about enabling their team to grow sustainably, not shrinking it.”

Douglas’s leadership viewed automation as an enabler for growth, particularly across the company’s consumer goods operation, which continues to scale. With plans to expand further into international markets, the company needed a warehouse solution that could match its ambitions without incurring unnecessary overheads or environmental burdens.

The AutoStore system’s energy footprint was another deciding factor. Despite its fleet of robots, the system consumes remarkably little power (comparable to just two standard vacuum cleaners) thanks to its efficient design and intelligent battery recharging.

This allowed Douglas to avoid costly power infrastructure upgrades, one of the main barriers to adopting industrial automation in existing buildings.

“They didn’t need to move, didn’t need to retrofit the building, and didn’t need to increase their power draw. The only real physical modification was grinding the warehouse floor to support the grid. Beyond that, it was all about smart design,” Mr Smith says.

Scalability was equally important. The modular AutoStore design means Douglas can add robots, ports, or bins as needed, without interrupting day-to-day operations. This ensures the system will support their forecasted growth for at least five years, with additional capacity ready to come online as demand increases.

Seismic compliance, being a vital factor in any New Zealand-based infrastructure project, was also built into the grid’s design and approved by Auckland Council.

The system’s uptime expectations were exceeded. With each robot operating independently, the overall grid remains functional even if one robot needs maintenance. Kardex, which already services more than 300 assets across New Zealand, provides a full national support network, with diagnostics, remote access, and on-site technicians all available to ensure reliability.

However, the implications extend well beyond the walls of Douglas’s Auckland site, Mr Smith says. For the broader logistics sector, this implementation represents a working example of automation that doesn’t require warehouse relocation, massive capital infrastructure, or large footprints.

Mr Smith says it demonstrates that high-efficiency, scalable fulfilment is attainable for New Zealand-based operations, even in cost-constrained or space-limited environments.

“Commercial real estate costs have exploded since the pandemic. Automation isn’t just about saving time or labour anymore; it’s about making every square metre count.

“This technology opens doors for companies of all sizes, not just big corporations. We’ve got installations planned for sites as small as 300 square metres.”

AutoStore also opens the door to 24/7 retail and e-commerce applications, with the potential to offer customer pickup ports and round-the-clock order access. While Douglas’s primary focus is pharmaceuticals and health products, the system’s flexibility makes it applicable across multiple sectors (think third-party logistics to food retail and small- to medium-scale manufacturers).

But for Douglas, the benefits are already tangible. With warehouse capacity increased by 30% and picking accuracy hitting 99.9%, the company is better positioned for the future. The investment has enabled them to defer costly property expansion, reduce picking-related errors, and provide staff with safer, more ergonomic working conditions.

“AutoStore empowered by Kardex is the future of fulfilment and we are impressed by how Douglas and the whole team have embraced the technology and made it such a key part of their business,” Mr Smith says.

Douglas Pharmaceuticals has installed New Zealand’s first AutoStore™ system, powered by Kardex, at its headquarters in Henderson, West Auckland. Photos: Kardex