McKesson 2009 Annual Report Download - page 10

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McKESSON CORPORATION
4
U.S. Pharmaceutical Distribution: This business supplies pharmaceuticals and other healthcare-related
products to customers in three primary customer segments: 1) retail national accounts (including national and
regional chains, food/drug combinations, mail order pharmacies and mass merchandisers); 2) independent retail
pharmacies; and 3) institutional healthcare providers (including hospitals, health systems, integrated delivery
networks, clinics and long-term care providers).
Our U.S. pharmaceutical distribution business operates and serves thousands of customer locations through a
network of 29 distribution centers, as well as a master redistribution center, a strategic redistribution center and two
repackaging facilities, serving all 50 states and Puerto Rico. We invest in technology and other systems at all of our
distribution centers to enhance safety, reliability and provide the best product availability for our customers. For
example, in all of our distribution centers we use Acumax® Plus, a Smithsonian award-winning technology that
integrates and tracks all internal inventory-related functions such as receiving, put-away and order fulfillment.
Acumax Plus uses bar code technology, wrist-mounted computer hardware and radio frequency signals to provide
customers with real-time product availability and industry-leading order quality and fulfillment in excess of 99.9%
adjusted accuracy. In addition, we offer Mobile ManagerSM, which integrates portable handheld technology with
Acumax Plus to give customers complete ordering and inventory control. We also offer McKesson Connect
(formerly Supply Management OnlineSM), an Internet-based ordering system that provides item lookup and real-time
inventory availability as well as ordering, purchasing, third-party reconciliation and account management
functionality. Together, these features help ensure customers have the right products at the right time for their
facilities and patients.
To maximize distribution efficiency and effectiveness, we follow the Six Sigma methodology — an analytical
approach that emphasizes setting high-quality objectives, collecting data and analyzing results to a fine degree in
order to improve processes, reduce costs and minimize errors. We continue to implement information systems to
help achieve greater consistency and accuracy both internally and for our customers.
The major offerings of the McKesson U.S. Pharmaceutical Distribution business, by customer group can be
categorized as retail national accounts, independent retail pharmacies and institutional healthcare providers.
Retail National Accounts — Business solutions that help national account customers increase revenues and
profitability:
•Central Fill — Prescription refill service that enables pharmacies to more quickly refill prescriptions remotely,
more accurately and at a lower cost, while reducing inventory levels and improving customer service.
•Redistribution Centers — Two facilities totaling 420 thousand square feet that offer access to inventory for
single source warehouse purchasing, including pharmaceuticals and biologicals. These distribution centers also
provide the foundation for a two-tiered distribution network that supports best-in-class direct store delivery.
•EnterpriseRx™ — McKesson EnterpriseRx™ is a fully integrated and centrally hosted pharmacy management
solution (Application Service Provider model). Built utilizing the latest technology, EnterpriseRx centralizes
data, reporting, pricing and drug updates, providing the operational control, visibility and support needed to
reduce costs and streamline administrative tasks.
•RxPakSM — Bulk-to-bottle repackaging service that leverages our purchasing scale and supplier relationships to
provide pharmaceuticals at reduced prices, help increase inventory turns and reduce working capital investment.
•Inventory Management — An integrated solution comprising forecasting software and automated replenishment
technologies that reduce inventory carrying costs.