Blue Yonder Case Studies McKesson Canada Optimizes Demand and Supply Planning

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	McKesson Canada Optimizes Demand and Supply Planning Blue Yonder

McKesson Canada Optimizes Demand and Supply Planning

Blue Yonder

Technology Category	Analytics & Modeling - Predictive Analytics Analytics & Modeling - Real Time Analytics
Applicable Industries	Healthcare & Hospitals
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Predictive Replenishment Inventory Management Demand Planning & Forecasting
Services	Data Science Services System Integration
Challenge	McKesson Canada, a company with annual revenues in the billions, serves millions of customers every day, delivering more than one-third of all prescription drugs in Canada. The company’s global supply chain manages over 250,000 distinct product SKUs. McKesson Canada was challenged to optimize its inbound products, and the inventory in its 13 distribution centers (DCs), via an outdated legacy system. New technology was needed to meet growing customer requirements, support revenue gains, manage supply-side disruptions, and increase accuracy and efficiency. McKesson Canada partnered with Blue Yonder to manage product flow into its DCs, as well as inventory levels. The stakes are high: billions of dollars in product acquisitions and over $1 billion of inventory are managed through Blue Yonder. Read More
About Customer	McKesson Canada is a healthcare distribution and retail pharmacy leader. With annual revenues in the billions, the company serves millions of customers every day, delivering more than one-third of all prescription drugs in Canada. The company’s global supply chain manages over 250,000 distinct product SKUs. The company was challenged with optimizing its inbound products and the inventory in its 13 distribution centers via an outdated legacy system. They needed new technology to meet growing customer requirements, support revenue gains, manage supply-side disruptions, and increase accuracy and efficiency. Read More
Solution	Blue Yonder’s combination of industry-standard and specialized, patented demand forecasting algorithms cover every type of sales pattern, including slow-moving SKUs, highly seasonal products and lumpy demand. This capability helps McKesson Canada achieve maximum forecast accuracy, with minimal time and effort from planners. Blue Yonder’s supply planning and replenishment capabilities help McKesson stage the right inventory throughout its distribution network, minimizing stock-outs while maximizing inventory turns. The result is increased service, at a lower inventory investment. Automation enables Blue Yonder to handle much of the heavy lifting and decision making, leaving planners to focus on strategic priorities. In addition, Blue Yonder’s advanced analytics help maintain and even improve performance over time. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Analytics & Modeling - Real Time Analytics

Applicable Industries

Healthcare & Hospitals

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Predictive Replenishment

Inventory Management

Demand Planning & Forecasting

Services

Data Science Services

System Integration

Challenge

McKesson Canada, a company with annual revenues in the billions, serves millions of customers every day, delivering more than one-third of all prescription drugs in Canada. The company’s global supply chain manages over 250,000 distinct product SKUs. McKesson Canada was challenged to optimize its inbound products, and the inventory in its 13 distribution centers (DCs), via an outdated legacy system. New technology was needed to meet growing customer requirements, support revenue gains, manage supply-side disruptions, and increase accuracy and efficiency. McKesson Canada partnered with Blue Yonder to manage product flow into its DCs, as well as inventory levels. The stakes are high: billions of dollars in product acquisitions and over $1 billion of inventory are managed through Blue Yonder.

About Customer

McKesson Canada is a healthcare distribution and retail pharmacy leader. With annual revenues in the billions, the company serves millions of customers every day, delivering more than one-third of all prescription drugs in Canada. The company’s global supply chain manages over 250,000 distinct product SKUs. The company was challenged with optimizing its inbound products and the inventory in its 13 distribution centers via an outdated legacy system. They needed new technology to meet growing customer requirements, support revenue gains, manage supply-side disruptions, and increase accuracy and efficiency.

Solution

Blue Yonder’s combination of industry-standard and specialized, patented demand forecasting algorithms cover every type of sales pattern, including slow-moving SKUs, highly seasonal products and lumpy demand. This capability helps McKesson Canada achieve maximum forecast accuracy, with minimal time and effort from planners. Blue Yonder’s supply planning and replenishment capabilities help McKesson stage the right inventory throughout its distribution network, minimizing stock-outs while maximizing inventory turns. The result is increased service, at a lower inventory investment. Automation enables Blue Yonder to handle much of the heavy lifting and decision making, leaving planners to focus on strategic priorities. In addition, Blue Yonder’s advanced analytics help maintain and even improve performance over time.

Impact #1	Operating cash flow improved by millions of dollars.
Impact #2	Significant reduction in inventory.
Impact #3	Reduction of over 10% in inbound lines to DCs.

Impact #1

Operating cash flow improved by millions of dollars.

Impact #2

Significant reduction in inventory.

Impact #3

Reduction of over 10% in inbound lines to DCs.

Benefit #1	Operating cash flow improved by millions of dollars.
Benefit #2	Reduction of over 10% in inbound lines to DCs.
Benefit #3	Fill rates exceed targets by 0.1% on average, and by 1% for new products.

Benefit #1

Operating cash flow improved by millions of dollars.

Benefit #2

Reduction of over 10% in inbound lines to DCs.

Benefit #3

Fill rates exceed targets by 0.1% on average, and by 1% for new products.

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Overview

McKesson Canada Optimizes Demand and Supply Planning

Operational Impact

Quantitative Benefit