A method and apparatus are provided for sorting items to form groups at respective sort destinations. A scanning station evaluates one or more characteristics of each item fed into the apparatus. The items are loaded onto one of a plurality of independently controlled delivery vehicles. The delivery vehicles are individually driven to sort destinations. Once at the appropriate sort destination, the delivery vehicle ejects the item to the sort destination and returns to receive another item to be delivered. A re-induction conveyor may be provided for receiving select items from the vehicles and conveying the items back to the input station for re-processing. Additionally, a controller is provided to control the movement of the vehicles based on a characteristic each item being delivered by each vehicle. When an item to be manually sorted is encountered, a visual alert aligned with a selected destination is activated until manual transfer is confirmed.