McKesson 2008 Annual Report Download - page 11

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McKESSON CORPORATION
4
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 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 in excess of 99.9% 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 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, reduce costs and minimize 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:
Retail National Accounts — Business solutions that help national accounts increase revenues and profitability:
•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.
•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.
•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 reduce inventory carrying costs.
Independent Retail Pharmacies — Solutions for managed care contracting, branding and advertising,
merchandising and purchasing that help independent pharmacists focus on patient care while improving
profitability:
•Health Mart® — Franchise program that provides independent pharmacies with managed care that drives
Pharmacy Benefit Manager recognition, branding that drives consumer recognition, in-store programs that drive
manufacturer and payor recognition, and community advocacy programs that drive industry recognition.
•AccessHealth® — Comprehensive managed care and reconciliation assistance services that help independent
pharmacies save time, access competitive reimbursement rates and improve cash flow.
•McKesson OneStop Generics® — Generic pharmaceutical purchasing program that helps pharmacies maximize
their cost savings with a broad selection of generic drugs, lower up-front pricing and one-stop shopping.
•Prefer Rx — Discount program that offers aggressive prices on more than 100 branded drugs, helping retail
independent pharmacies increase margins and eliminate rebate paperwork.
•Sunmark® — Complete line of more than 1,000 products that provide retail independent pharmacies with
value-priced alternatives to national brands.
•FrontEdge™ — Strategic planning, merchandising and price maintenance program that helps independent
pharmacies maximize store profitability.
•McKesson Home Health Care — Comprehensive line of more than 1,800 home health care products, including
durable medical equipment, diabetes supplies, self-care supplies and disposables from national brands and the
Sunmark® line.