McKesson 2006 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2006 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

McKESSON CORPORATION
Our U.S. Pharmaceutical business operates and serves thousands of customer locations through a network of 28 distribution centers, as well
as a master distribution center, a strategic distribution center and a repackaging facility, serving all 50 states. We invest in technology and other
systems at all of our distribution centers to enhance safety, reliability and the best product availability for our customers. For example, in all of
our distribution centers we use Acumax® Plus, a Smithsonian award-winning technology, which integrates and tracks all internal 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 our customers with real-time product availability and industry-leading order quality and fulfillment at up to 99.9%
accuracy. In addition, we offer Closed Loop DistributionSM, which integrates portable handheld technology with Acumax® Plus to give
customers complete ordering and inventory control. We also offer Supply Management OnlineSM, an Internet-based tool that provides item
look-up and real-time inventory availability as well as ordering, purchasing, third-party reconciliation, and account management functionality.
Together, these features help ensure that our 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, and reduce costs and errors.
Furthermore, we continue to implement information systems to help achieve greater consistency and accuracy both internally and for our
customers.
Our U.S. Pharmaceutical Distribution business’ major value-added offerings, by customer group, include the following:
National and Regional Retail Chains (drug stores, food/drug combinations, mail order pharmacies, and mass merchandisers) — Business
solutions that help chains increase revenues and profitability:
Retail Independent Pharmacies — Marketing, merchandising, operational efficiencies and industry leadership that help pharmacists focus on
patient care while improving profitability:
4
• Central Fill — Prescription refill service that enables pharmacies to refill prescriptions remotely, faster, more accurately, and at a lower cost,
while reducing inventory levels and improving customer service.
• Verispan — Data analytics platform that allows pharmacies to track customer loyalty and retention, patient behavior across classes of trade,
sales trends by region and therapeutic class, leading to better decision-making and improved financial performance.
• Re-Distribution Centers — Two large facilities 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.
• RxPakSM — Bulk repackaging service that leverages our purchasing power 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 reduces
inventory carrying costs.
• Valu-Rite® and Health Mart® — Co-op and franchise programs that provide independent pharmacies with group branding and purchasing
power.
• AccessHealth — Comprehensive managed care and reconciliation assistance services that help independent pharmacies save time and
money.
• McKesson OneStop GenericsSM — Generic pharmaceutical purchasing program that helps pharmacies maximize their cost savings with a
broad selection of rebate-eligible generic drugs, lower up-front pricing, and one-stop shopping.
• FrontEdge™ — Strategic planning, merchandising, and price maintenance program that helps independent pharmacies maximize store
profitability.