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Int McKesson CaseStudy

McKesson, the world's largest pharmaceutical wholesaler, was concerned about the growing population being served out of their facility in Florida. The need to ship rapidly, accurately and economically was a conflict but the goal was accomplished and the facility is exceeding expectations. With over 45,000 stock keeping units stored in this 225,000 square foot distribution center, McKesson is operating with a lean staff. ROI was obtained in less than 12 months.

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131 views

Int McKesson CaseStudy

McKesson, the world's largest pharmaceutical wholesaler, was concerned about the growing population being served out of their facility in Florida. The need to ship rapidly, accurately and economically was a conflict but the goal was accomplished and the facility is exceeding expectations. With over 45,000 stock keeping units stored in this 225,000 square foot distribution center, McKesson is operating with a lean staff. ROI was obtained in less than 12 months.

Uploaded by

Intelligrated
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CASE STUDY

MCKESSON

The Perfect Prescription

Benefits achieved
When you think about hospitals, the emergency ward is the mission critical point. But when you think about being a pharmaceutical company the distribution center is the most critical point. McKesson, the worlds largest pharmaceutical wholesaler, was concerned about the growing population being served out of their facility in Florida. The perfect prescription was the design of the new Lakeland facility. The need to ship rapidly, accurately and economically may be a conflict but the goal was accomplished and the facility is exceeding expectations. Floridas population is growing at a critical rate and many of the residents are senior citizens who take an average of seven medications per day. McKesson ships prescription medicines, over-the-counter drugs and health and beauty aids for hospitals, drug stores and retail chains throughout all of Florida. The system needed to be designed with maximum throughput but yet with flexibility of growth for the growing population. The facility design is unique and not just a run of the mill design. Besides having the normal full case, piece picking and full pallet requirements, this McKesson facility also had drugs that needed to be refrigerated, security drugs that needed to be in a locked cage and secure items required by the FDA to be in a vault. When order picking is complete all the pieces of an order in all the different pick areas need to come together. This was accomplished with an Intelligrated conveyor system. The orders are then combined at the shipping dock where the labels are scanned and merged. The McKesson facility is operating six days a week because most of their customers do not store much inventory and use this new Lakeland facility as their warehouse storage system. With over 45,000 stock keeping units stored in this 225,000 square foot distribution center, McKesson is operating with a lean staff. It was important that the design flowed in a way to get maximum throughput but still give the employees great productivity enhancements, said Craig Stewart, of FCP Integrated Systems, the system integrator for McKesson and an Intelligrated partner.
IntelliSort
The McKesson facility ships orders at rapid speed. The facility is super energy efficient. ROI was obtained in less than 12 months.

Industry Pharmacuticals

ROI Achieved Faster Than Expected!


McKesson installed Intelligrateds new MDR conveyor. Because this is smart conveyor and only runs when needed instead of continuously, the added benefit is a reduction of power. This reduction of power, along with other benefits already expected, allowed McKesson to receive a six month return on investment. The system is designed to activate individual conveyor zones only when a product is present. At other times, the rollers shut off, which substantially reduces electrical needs and decreases noise levels.
MDR Belted Incline

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picked. McKesson uses a pick and pass order picking The sorter is so quiet that I can stand next to it and still have a cell phone conversation. Doug Pace General Manager McKesson, Lakeland There are verification stations that digitally record the contents of each outgoing carton and then they are put on a sliding shoe sorter which has been designed to conserve energy and lower noise levels within a distribution center. The orders are then sorted to one of ten shipping docks. The replenishment of the carton flow rack was designed by FCP to include a conveyor so that the product is delivered to the stocker reducing walk time and touch times. The stocker has a specially designed step ladder that arches over the conveyor to reach the top of the rack to replenish. 2004 Modern Materials Handling Productivity Award Winner Warehousing This system is using MDR conveyor which saved McKesson the cost of 147 drive motors. The MDR conveyor is easy to repair in addition to being the most energy efficient conveyor in the industry. The decrease in AC units is estimated between 30-70% depending on volumes. When the facility is at full capacity and speed, this is a huge savings for McKesson. methodology with conveyor transporting totes from zone to zone.

Components Of The System


When an order is received in the new McKesson state-of-the-art facility the message is sent to the order picker via a wireless terminal. Picking occurs at several different places in the warehouse. Messages are sent to the order pickers in a two level pick module where over-the-counter and health and beauty aids are

Partners In Success
Intelligrateds distributor, FCP Integrated Systems (www.fcpis.com), worked with McKesson to design a system that would enhance their throughput and give them flexibility and the ability to respond quickly. The McKesson team was very concerned about customer satisfaction, speed, accuracy and throughput, which were all must requirements. Intelligrated worked with us to help design a solution that will serve McKesson well into the future, said Craig Stewart, President, FCP.

Intelligrated Motor Driven Roller

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About Intelligrated
Intelligrated is a leading American-owned, single-point provider of automated material handling solutions with operations in the U.S., Canada and Mexico. Headquartered in Cincinnati, Intelligrated designs, manufactures and installs complete material handling automation solutions, including IntelliSort line sortation systems, Crisplant tilt-tray and cross-belt sortation systems, conveyor systems, Alvey palletizers and robotics, Real Time Solutions order fulfillment systems, warehouse control software and advanced machine controlsall supported by 24x7 Customer Service and Support.

Intelligrated Service & Support


The in-house Customer Service and Support (CSS) program offered by Intelligrated backs all of our products. Services available include: IN-24x7 technical support hotline Spare parts logistics Field service Equipment and system audits Upgrades and modifications Full service and maintenance contracts Preventive maintenance Customer training

Serving the warehousing, distribution, consumer product manufacturing, postal and parcel markets, Intelligrated collaborates closely with its clients to develop productivity solutions and responds to their needs throughout the life of their material handling systems.

CSS is available 24x7 to provide all of the services needed to keep your equipment running at peak efficiency. Whether its on-site support or troubleshooting via our hotline, Intelligrated has the most comprehensive customer support program in the industry.

Service and Parts Hotline Phone + 1 877.315.3400

Intelligrated Products and Services


Systems Integration Sortation Systems Conveyor Systems Palletizing Solutions Software & Controls Order Fulfillment Systems 24x7 Technical Support Design & Build

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Headquarters in Mason, Ohio

For more information, contact:

7901 Innovation Way, Mason, Ohio 45040 + 1 866.936.7300 [email protected] www.intelligrated.com

CSMcK01 12.09 2009 Intelligrated. All rights reserved.

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