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Walgreens doubles down on robots to fill prescriptions amid turnaround

INBV News by INBV News
May 11, 2025
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Walgreens doubles down on robots to fill prescriptions amid turnaround
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A robotic arm fills prescriptions at a Walgreens’ micro-fulfillment center.

Courtesy: Walgreens

As struggling drugstore chains work to regain their footing, Walgreens is doubling down on automation. 

The corporate is expanding the variety of retail stores served by its micro-fulfillment centers, which use robots to fill 1000’s of prescriptions for patients who take medications to administer or treat diabetes, hypertension and other conditions. 

Walgreens goals to release time for pharmacy staff, reducing their routine tasks and eliminating inventory waste. Fewer prescription fills would allow employees to interact directly with patients and perform more clinical services resembling vaccinations and testing.

Walgreens first rolled out the robot-powered centers in 2021, but paused expansion in 2023 to give attention to gathering feedback and improving performance at existing sites. After greater than a yr of creating upgrades, including latest internal tools, the corporate said it’s able to expand the reach of that technology again.

Walgreens told CNBC it hopes to have its 11 micro-fulfillment centers serve greater than 5,000 stores by the tip of the yr, up from 4,800 in February and 4,300 in October 2023. As of February, the centers handled 40% of the prescription volume on average at supported pharmacies, in line with Walgreens. 

That translates to around 16 million prescriptions filled every month across the various sites, the corporate said. 

The renewed automation push comes as Walgreens prepares to go private in a roughly $10 billion take care of Sycamore Partners, expected to shut by the tip of the yr. 

The deal would cap a turbulent chapter for Walgreens as a public company, marked by a rocky transition out of the pandemic, declining pharmacy reimbursement rates, weaker consumer spending and fierce competition from CVS Health, Amazon and other retail giants.

Like CVS, Walgreens has shifted from opening latest stores to closing lots of of underperforming locations to shore up profits. Each firms are racing to remain relevant as online retailers lure away customers and patients increasingly go for fast home delivery over traditional pharmacy visits.

The changes also follow mounting discontent amongst pharmacy staff: In 2023, nationwide walkouts spotlighted burnout and chronic understaffing, forcing chains to reexamine their operational models.

Walgreens said the investment in robotic pharmacy fills is already paying off.

So far, micro-fulfillment centers have generated roughly $500 million in savings by cutting excess inventory and boosting efficiency, said Kayla Heffington, Walgreens’ pharmacy operating model vice chairman. Heffington added that stores using the facilities are administering 40% more vaccines than people who aren’t. 

“Immediately, they’re the backbone to actually help us offset a number of the workload in our stores, to obviously allow more time for our pharmacists and technicians to spend time with patients,” said Rick Gates, Walgreens’ chief pharmacy officer.

“It gives us lots more flexibility to bring down costs, to extend the care and increase speed to therapy – all those things,” he said. 

Gates added that the centers give Walgreens a competitive advantage because independent pharmacies and a few rivals haven’t got centralized support for his or her stores. Still, Walmart, Albertsons and Kroger have similarly tested or are currently using their very own micro-fulfillment facilities to dispense grocery items and other prescriptions. 

Micro-fulfillment centers include their very own risks, resembling a heavy reliance on sophisticated robotics that could cause disruptions if errors occur. However the facilities have gotten a everlasting fixture in retail as a result of the price savings they provide and their ability to streamline workflows, reduce the burden on employees and deliver goods to customers faster.

How Walgreens micro-fulfillment works 

Inside a Walgreens micro-fulfillment center, which helps fill 1000’s of prescriptions.

Courtesy: Walgreens

When a Walgreens retail pharmacy receives a prescription, the system determines whether it needs to be filled at that location or routed to a close-by micro-fulfillment center. Maintenance medications, or prescribed drugs taken frequently to administer chronic health conditions, and refills that do not require immediate pickup are sometimes sent to micro-fulfillment.

On the core of every facility is a highly automated system that uses robotics, conveyor belts and barcode scanners, amongst other tools, to fill prescriptions. The operations are supported by a team of pharmacists pharmacy technicians and other professionals.

As an alternative of staff members filling prescriptions by hand at stores, pill bottles move through an automatic and punctiliously choreographed assembly line. 

Pharmacy technicians fill canisters with medications for robot pods to dispense, and pharmacists confirm those canisters to be sure that they’re accurate. Yellow robotic arms grab a labeled prescription vial and hold it as much as a canister, which precisely dispenses the particular medication for that bottle.

Robotic arms fill prescriptions at a Walgreens micro-fulfillment center.

Courtesy: Walgreens

Certain prescriptions are filled at separate manual stations, including inhalers and contraception pill packs. Each prescription is then sorted and packaged for delivery back to retail pharmacy locations for final pickup.

There are other safety and security measures throughout the method, said Ahlam Antar, registered group supervisor of a micro-fulfillment center in Mansfield, Massachusetts. 

For instance, the robot pods routinely lock and signal an error with a red-orange light if a employee attaches a canister to the flawed dispenser, stopping the wrong pills from stepping into a prescription, she said. 

Properly training employees on the centers to make sure accuracy and patient safety can also be crucial, in line with Sarah Gonsalves, a senior certified pharmacy technician on the Mansfield site. 

She said a core a part of her role is to be sure that that technicians can appropriately perform the various tasks in the method. 

Improvements to robotic prescription fills

Antar, who has worked on the Mansfield site since its 2022 opening, said Walgreens has made improvements to the micro-fulfillment process after considering feedback from stores and patients in the course of the paused expansion. That features establishing latest roles needed to support the method on the sites, resembling a training manager for all 11 locations. 

The facilities also plan to transition to using smaller prescription vials after hearing concerns that the present bottles are too large, in line with a Walgreens spokesperson. They said that may allow the centers to ship more prescriptions per order and reduce costs.

A robotic arm fills a prescription vial at a Walgreens micro-fulfillment center.

Courtesy: Walgreens

Heffington said the automated locations have helped reduce Walgreens’ overall prescription achievement costs by nearly 13% in comparison with a yr ago. 

She said Walgreens has also increased prescription volume by 126% year-over-year, now filling greater than 170 million prescriptions annually. The corporate hopes to lift that number to 180 million or much more. 

Heffington added that Walgreens implemented latest internal tools to trace the work across all 11 centers and supply real-time data on where a patient’s prescription is within the micro-fulfillment process. 

“If a patient called the shop and said, ‘Hey, are you able to tell me where my prescription is today?’ [Workers] can try this with great specificity,” because of the brand new tools, Heffington said. 

Despite the corporate’s progress, Gates said there’s more work to be done with micro-fulfillment centers. 

For instance, he pointed to the opportunity of shipping prescriptions on to patients’ doorsteps as a substitute of putting that burden on retail stores. 

“It’s only the first step without delay,” he said. 

Other improvements should still be needed at facilities, in line with some reports. For instance, WRAL News reported in April that some customers at a Walgreens store in Garner, North Carolina, say they’re only getting partial prescription fills, with several pills missing, or their medicine is being delayed.

Retail store pharmacy staff see advantages 

A customer views merchandise on the market at a Walgreens store within the Hollywood neighborhood of Los Angeles.

Christopher Lee | Bloomberg | Getty Images

Before Brian Gange’s Arizona store began counting on an automatic facility, he walked into the pharmacy every morning knowing that an enormous list of prescriptions was in his work queue waiting to be filled for the day. 

Now, with help from micro-fulfillment, that list is significantly smaller every day, in line with Gange. 

“We haven’t got to spend as much time on just those repetitive achievement tasks,” he told CNBC. “It really takes an enormous weight off our shoulders.” 

Gange said that offers him and his team time to step behind the pharmacy counter and interact with customers face-to-face, answering questions, providing advice, performing health tests or administering vaccines. 

That sort of attention could make all of the difference for a patient.  

For instance, Gange recalls stepping away for five minutes to take a patient’s blood pressure despite being overwhelmed with tasks while working at a distinct Walgreens location several years ago. He ended up sending that person to the emergency room because their blood pressure was “off the charts.” 

That patient’s wife visited the pharmacy the subsequent day to thank Gange, saying her husband “probably would not be here with us today” without that blood pressure test. 

“I shouldn’t should query whether I even have that five or 10 minutes to examine a blood pressure for a patient,” Gange said. “Micro-fulfillment and centralized services are really what are going to permit us to have the option to try this, to have that point.” 

“That basically allows us to supply higher look after them,” he added.

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