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Kiva Systems Selected by Walgreens for Distribution Center Expansion

World’s largest split-case picking operator finds faster, more flexible solution in Kiva’s mobile robotic system

Woburn, MA - November 7, 2007 -Kiva Systems, a developer of breakthrough mobile robotic solutions for the dynamic storage, movement and sortation of inventory, today announced that Walgreens has installed Kiva’s Mobile Fulfillment System to expand split-case picking in its Mt Vernon, Illinois Distribution Center.  The system will ship its first order totes in mid-November, only six weeks after installation began.

Walgreens chose Kiva’s mobile fulfillment technology for its speed and flexibility, both of which are critical to the company’s continued expansion. Walgreens operates more than 6,000 stores and plans to open 550 new stores during its 2008 fiscal year.

Walgreens is using Kiva’s ItemFetch split-case picking system together with the OrderFetch shipping sorter.  The ItemFetch system uses mobile robots to bring inventory to Walgreens distribution team members to be picked in the specific sequence required for efficient restocking of store shelves, reducing in-store labor.  Testing has shown that the Kiva approach can more than double pick rates in this application.  The team member picks the items into totes on OrderFetch pods that are then moved by mobile robots to the right shipping location at the right time.  The combination of these two Kiva products provides for high-speed picking with unlimited sortation and eliminates the need for complex conveyors and a fixed shipping sorter.

According to Kiva Systems founder and CEO Mick Mountz, “Walgreens is the largest split-case picking operator in the world and their talented team of logistics professionals has already achieved the industry’s highest levels of productivity.  We’re delighted that they have chosen Kiva for this next strategic opportunity.”

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