Week 4: Supply Chain Improvements
Capella University – BUS3022
Fund Supply Chain Mgmt - BUS3022
Supply chain management components are planning, sourcing, making, delivering, and
returning. The largest national medical supply distributor, McKesson’s, role within this chain is
a part of the delivery segment. “The company’s role is to distribute medications provided by
, pharmaceutical manufacturers – including opioid medications – that are ordered by healthcare
entities (such as pharmacies, hospitals, clinics or nursing facilities) that are licensed by the DEA
and state regulatory authorities, and only for prescriptions that are written by medical
professionals registered by the DEA and licensed by state medical boards to prescribe these
medications” (McKesson 2024). Currently McKessons 30 US based pharmaceutical distribution
centers work 24/7 to pack and ship products across the country. This is done with the use of
automated technology. Packing and shipping is completed with approx. 99.98% accuracy.
Distribution is done by air and sea.
“McKessons core business revolves around healthcare supply management,
pharmaceutical distribution and healthcare technology solutions” (Cuello, 2023). McKesson has
committed to implementing innovation and technology to position themselves as leaders in
healthcare services. The supply chain strategy supports the business model because the process is
indeed working. MCK delivers 1/3rd of all pharmaceuticals used in the United States. The
technological advances that have been employed have launched McKesson into a global
company. These innovations have allowed McKesson the advantage of “efficiencies of scale,
through its huge distribution network” (Pysh, 2017). Scaling the business to dominate the market
and outperform its competitors. The scale of operations includes 30+ US distribution centers, 14
Canadian distribution centers, and a large portfolio of patents which create barriers to entry for
its competitors. Over the years MCK has diversified the company to include technology
Fund Supply Chain Mgmt - BUS3022
10:40:50 GMT -05:00
Capella University – BUS3022
Fund Supply Chain Mgmt - BUS3022
Supply chain management components are planning, sourcing, making, delivering, and
returning. The largest national medical supply distributor, McKesson’s, role within this chain is
a part of the delivery segment. “The company’s role is to distribute medications provided by
, pharmaceutical manufacturers – including opioid medications – that are ordered by healthcare
entities (such as pharmacies, hospitals, clinics or nursing facilities) that are licensed by the DEA
and state regulatory authorities, and only for prescriptions that are written by medical
professionals registered by the DEA and licensed by state medical boards to prescribe these
medications” (McKesson 2024). Currently McKessons 30 US based pharmaceutical distribution
centers work 24/7 to pack and ship products across the country. This is done with the use of
automated technology. Packing and shipping is completed with approx. 99.98% accuracy.
Distribution is done by air and sea.
“McKessons core business revolves around healthcare supply management,
pharmaceutical distribution and healthcare technology solutions” (Cuello, 2023). McKesson has
committed to implementing innovation and technology to position themselves as leaders in
healthcare services. The supply chain strategy supports the business model because the process is
indeed working. MCK delivers 1/3rd of all pharmaceuticals used in the United States. The
technological advances that have been employed have launched McKesson into a global
company. These innovations have allowed McKesson the advantage of “efficiencies of scale,
through its huge distribution network” (Pysh, 2017). Scaling the business to dominate the market
and outperform its competitors. The scale of operations includes 30+ US distribution centers, 14
Canadian distribution centers, and a large portfolio of patents which create barriers to entry for
its competitors. Over the years MCK has diversified the company to include technology
Fund Supply Chain Mgmt - BUS3022
10:40:50 GMT -05:00
