McKesson Corporation · NYSE:MCK
McKesson — Investor Presentation (January 2015)
16 slides from McKesson's investor presentation, January 2015
Slide 1: Utilizing technology to better manage the supply chain
Utilizing technology to better manage the supply chain January 2015 Jayme White Director Technology Sales
Slide 2: Agenda
Agenda Average procurement cycle Challenges Key components and features Driving savings Case studies Solutions Q&A McKesson Corporation Confidential and Proprietary
Slide 3: Procurement Cycle
Procurement Cycle Par Areas Requisitioning Departments Place Orders with Suppliers Purchase Approve Product Use Orders Order Walk in Usage Reports & Analytics Route to Ongoing Departments Inventory Receiving 3-Way Match & GL Integration McKesson Corporation Confidential and Proprietary
Slide 4: Challenges
Challenges •Labor intensive processes •Disparate systems •Error prone •Inaccurate information •Inconsistent practices •Lack of control •No visibility •Multiple items for the same thing •Inability to manage costs •Staffing constraints •Limited space McKesson Corporation Confidential and Proprietary
Slide 5: Ways technology can improve the supply chain
Ways technology can improve the supply chain • Product standardization Control • Price and contract compliancy • Customizable requisition and/or order templates • Approval routing • Single portal for all orders • Par level management with auto suggestions Efficiency • Purchase orders, receiving & in
Slide 6: Key features to look for
Key features to look for Multiple Organizations •Contract & price management Multiple facilities •Par Level & Min-Max management Single item master •Auto-replenishment Unlimited inventory locations •Approval Rules Requisitioning •Barcode technology Purchase orders •Customizable reporting Rece
Slide 7: Integrations are invaluable
Integrations are invaluable •Clinical and Financial •Usage •Price update •Accounts Payable Suppliers Supply Chain Mgt System Clinical Staff Email EDI/VANs E-Fax Financial Barcode Systems Scanning McKesson Corporation Confidential and Proprietary
Slide 8: A manual PO could be costly
A manual PO could be costly Average Cost to Process a Complete Purchase Transaction Established Supplier New Supplier Low Average High Low Average High Current Cost $ 76.57 $ 97.44 $ 118.30 $ 95.78 $ 147.44 $ 199.10 In a recent study by the Center for Advanced Purchasing, 169 companies were surveyed
Slide 9: Potential savings opportunities
Potential savings opportunities Purchasing Transaction Costs Purchasing Order Fulfillment Time Purchasing Cycle Time Number of Suppliers Price Paid for Goods FTE's to Support Purchase Transactions 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% From a Study by the Center for Advanced Purchasing Studies; Rober
Slide 10: Radiopharmaceutical company reduced costs across their network
Radiopharmaceutical company reduced costs across their network Each of its 60 pharmacy sites had always purchased supplies independently This group used McKesson Inventory Manager to audit the medical and office supplies each site was purchasing and then standardized products across the network base
Slide 11: Rehab Center reduces waste and ordering times
Rehab Center reduces waste and ordering times Staff use their ID badges at kiosks located throughout the building, select a patient & scan the items needed — tracking each item to a specific patient Set up min & max levels that trigger orders automatically to replenish inventory in supply rooms and
Slide 12: Orthopedic Clinic decreasing costs & increasing efficiency
Orthopedic Clinic decreasing costs & increasing efficiency An eight location specialty group where each location purchased and managed their medical and non-medical supplies in silos without intervention from materials management Once the assessment was complete, Group had approximately four to six
Slide 13: Surgery Center enable best practice processes across their facilities
Surgery Center enable best practice processes across their facilities This Surgery Center was looking for supply cost reduction, contract compliance, corporate visibility into their network of facilities and improve inventory control Generated $1,000,000 in cost savings through contract utilization
Slide 14: Many solutions to choose from
Many solutions to choose from McKesson SupplyManagerSM McKesson ScanManagerSM McKesson ScanManager PlusSM / IOS McKesson Inventory ManagerSM McKesson Corporation Confidential and Proprietary
Slide 15: Q&A – Thank you
Q&A – Thank you Contact me at Jayme.White@mckesson.com 702-210-1455 McKesson Corporation Confidential and Proprietary
Slide 16: Disclaimer
Disclaimer “Unless otherwise noted, the recommendations in this document were obtained from the National Institute of Supply Chain Management and Center for Advanced Purchasing. Be advised that information contained herein is intended to serve as a useful reference for informational purposes only an