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Customer Snapshot: Overview

Supplying 200,000 doctors, 26,000 pharmacies, & 5,000 hospitals

Started over 175 years ago, McKesson is now the oldest and largest healthcare service company in the United States. With 35,000 employees worldwide, McKesson distributes pharmaceutical products to customers such as Target, Wal-Mart, and smaller stores, and provides IT services for healthcare businesses including almost all large hospitals.

McKesson Corp.

US$112 billion (2011)

Number of Employees

Implementation Partner URL

Wholesale Distribution

San Francisco, California, USA

Customer Website

Implementation Partners

Line of Business
Platform and Technology, Service

SAP Solutions
SAP BusinessObjects business intelligence (BI) solutions, SAP Data Maintenance for ERP by Vistex, SAP MaxAttention, SAP Supplier Relationship Management (SAP SRM)

The oldest and largest in the United States…

Customer Snapshot: History

Founded in 1833. Over US$112 billion in revenue today.

Customer Snapshot: Business Model

Delivering Services and Solutions

McKesson brings together clinical knowledge, process expertise, technology and the resources of a FORTUNE 15 company to fundamentally change the cost and quality of available health care services in the United States. They do this through two separate business streams – Distribution Solutions and Technology Solutions.

The Distribution Solutions:

Currently the largest in North America and operating in Canada and Mexico, McKesson Distribution Solutions delivers pharmaceuticals to retail pharmacies and institutional providers like hospitals and health systems. They also deliver a comprehensive offering of health care products, technology, equipment and related services to the alternate site market, including physician offices, surgery centers, long-term care facilities and home care businesses across the country.

Technology Solutions:

McKesson Technology Solutions provides software, automation, services and consulting to hospitals, physician offices, imaging centers, home health care agencies and payers. They also provide interactive connectivity services that streamline clinical, financial and administrative communication between patients, providers, payers, pharmacies and financial institutions.

The Challenge

Reducing Errors

In an ever-changing healthcare environment, McKesson’s legacy system wasn’t up to speed when it came to maintaining master data. So they started looking for a better system, one that was flexible and that could reduce their data maintenance error rate.

Legacy system slowing down data maintenance.

Enter SAP

Finding Flexibility

McKesson was looking for flexibility, and SAP Data Maintenance for ERP by Vistex gave them that. With productivity tools and mass maintenance functions, McKesson found greater flexibility, better visibility, and, most of all, the ability to perform quality control on their data.

Offering the flexibility McKesson needed.

Enter SAP: The SAP Experience

Consolidating for Quality

With a consolidated SAP platform, McKesson’s IT costs have been reduced. And the total cost of ownership has also decreased. Spending more time on quality and reducing the error rate have had a positive effect on their customer relationships.

Better Business: Benefits

Working Smarter

Since implementation, McKesson has been able to work smarter and achieve better results:
– Less data entry
– More flexibility & visibility of the data
– Consistent data quality control
– TCO reduction
Realizing the many benefits of SAP.

Better Business: Run Simple

Less is More

In moving their systems to an SAP-centric solution, McKesson has been able to replace about 250 different interfaces and maintain their master data on a single, consolidated platform.

Running smarter, faster, and with much less complexity.

Journey Ahead

An Even Better Future

Having recognized that they want to move forward inside the healthcare industry, McKesson firmly believes that partnering with SAP and Vistex will continue to assist them in meeting their business objectives.

Changing with the times, and the healthcare industry.

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