KNAPP powers CDC Pharmaceutical’s Growth with First-Level Automation

CDC Pharmaceuticals, a leading pharmaceutical wholesaler, has successfully implemented KNAPP’s automation technology at its Christchurch distribution centre in New Zealand, marking a major milestone in its first step toward automated fulfilment. This partnership has streamlined operations, increased efficiency, and positioned CDC for continued expansion in New Zealand’s healthcare sector. As demand grew, CDC faced operational bottlenecks that limited its ability to scale. Recognising the need for automation to support future growth, the company partnered with KNAPP, a global leader in intelligent logistics solutions. KNAPP worked closely with CDC to develop a tailored automation solution that aligned with its size, needs, and growth objectives.

Automation Designed for Growth

KNAPP’s expertise in automation is often associated with large-scale logistics operations, but CDC’s journey proves that automation isn’t just for big players. The KNAPP-installed system at CDC includes:

• A Central Belt System (A-Frame) for high-speed, automated order fulfilment.
• Radio Frequency (RF) operated manual CLS stations for flexibility and precision.
• Automated dispatch lanes to accelerate outbound processes.

The installation boosted CDC’s order fulfillment capacity by 25 per cent, allowing the company to process more than 9000 units per hour, reducing bottlenecks and improving fulfilment speed. The efficiencies gained through automation have created a calmer, more structured warehouse environment, setting CDC up for further growth.

“KNAPP has been a true partner in this journey,” says Mike Rhodes, Chief Executive of CDC Pharmaceuticals. “They took the time to understand our business, our challenges and our goals. Their solution wasn’t just about automation – it was about enabling CDC to grow, and that’s exactly what it has done.” This first level of automation is a steppingstone for CDC’s long-term growth strategy. With KNAPP’s technology in place, CDC is now positioned to scale operations efficiently, ensuring faster, more reliable pharmaceutical distribution across New Zealand.

Efficient Warehouse Workflow

The warehouse process at CDC Pharmaceuticals is meticulously designed for efficiency. Upon arrival, products are received in the inbound area, where CDC’s system directs the stock to overstock or replenishment zones, including the vault, bulk storage, fridge, and automation areas. SKUs designated for automation are then placed in their specific locations, either in the Central Belt System (A-Frame) or at one of the manual CLS stations. Orders are picked according to demand, and the totes containing the picked items are routed to the appropriate dispatch lane based on the assigned run. This assignment is managed by CDC’s Warehouse Management System (WMS), ensuring a seamless and accurate workflow. This streamlined process not only enhances operational efficiency but also supports CDC’s commitment to reliable and timely pharmaceutical distribution.

“Automation isn’t just for large enterprises,” says Tiago Oliveira, Business Development Manager at KNAPP Australia. “CDC is a great example of how small to medium-sized businesses can implement scalable automation to improve efficiency and unlock growth opportunities.” By delivering tailored automation solutions, KNAPP continues to support businesses of all sizes, helping them reduce costs, enhance accuracy, and build scalable fulfilment networks. This approach ensures that even smaller businesses can benefit from advanced logistics technologies, paving the way for growth and innovation in the industry.

About KNAPP

KNAPP is the reliable technology partner for intelligent value chain management. Headquartered in Austria, the KNAPP Group provides all-in-one solutions for automation and digitalization, from production and distribution to the point of sale. Excellent service and long-term collaboration make KNAPP the strong partner behind the success of their customers in the sectors healthcare, retail and lifestyle, food retail, fashion, wholesale and manufacturing.

About CDC Pharmaceuticals

Founded in 1927, CDC Pharmaceuticals is a leading New Zealand cooperative wholesaler, supplying pharmacies and hospitals with essential healthcare products. With a nationwide distribution network, CDC delivers 36 million items annually, ensuring reliable and efficient supply chain operations. CDC is a pharmaceutical wholesaler of medicines and OTC products to pharmacies and hospitals throughout New Zealand. As a cooperative company, they prioritise customers, build relationships and deliver on service. CDC is committed to saving and improving lives.

For further information, please contact:

KNAPP Australia Media Manager Ruza Zivkusic +61466 500 140

CDC Pharmaceuticals Chief Executive Mike Rhodes 03 3593970