McKesson 2016 Annual Report Download - page 10

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McKESSON CORPORATION
Net revenues for our segments for the last three years were as follows:
Years Ended March 31,
(Dollars in billions) 2016 2015 2014
Distribution Solutions $188.0 98% $176.0 98% $134.1 98%
Technology Solutions 2.9 2 3.1 2 3.3 2
Total $190.9 100% $179.1 100% $137.4 100%
Distribution Solutions Segment
Our Distribution Solutions segment consists of the following businesses: North America pharmaceutical
distribution and services, International pharmaceutical distribution and services and Medical-Surgical
distribution and services.
North America pharmaceutical distribution and services
Our North America pharmaceutical distribution and services business is comprised of the following
business units: U.S. Pharmaceutical Distribution, McKesson Specialty Health, McKesson Canada, and
McKesson Pharmacy Technology & Services.
U.S. Pharmaceutical Distribution: This business supplies branded, specialty and generic pharmaceuticals
and other healthcare-related products to customers throughout the United States in three primary customer
channels: (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 alternate site providers).
This business also provides solutions and services to pharmaceutical manufacturers. This business sources
materials and products from a wide-array of different suppliers, including certain generic pharmaceutical drugs
produced through a contract-manufacturing program.
Our U.S. pharmaceutical distribution business operates and serves thousands of customer locations through
a network of 31 distribution centers, as well as a primary 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 and reliability and to provide the best product availability for
our customers. For example, in most of our distribution centers we use Acumax®Plus, an 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 ConnectSM, 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.
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