McKesson Canada Optimizes Demand and Supply Planning
Customer Company Size
Large Corporate
Region
- America
Country
- Canada
Product
- Blue Yonder's demand forecasting algorithms
- Blue Yonder's supply planning and replenishment capabilities
- Blue Yonder's advanced analytics
Tech Stack
- Demand Forecasting
- Supply Planning
- Advanced Analytics
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
- Customer Satisfaction
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
About The 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The company was challenged with optimizing its inbound products and the inventory in its 13 distribution centers via an outdated legacy system.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.
The 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Canada was challenged to optimize its inbound products, and the inventory in its 13 distribution centers (DCs), via an outdated legacy system.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.
The 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.
Operational Impact
Quantitative Benefit
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