McKesson Moves Medicine with Slotting Optimization
McKesson Corporation distributes prescription drugs, health and beauty products, and medical supplies from its 27 distribution centers to more than 25,000 facilities. McKesson turned to Manhattan solutions to maintain its order accuracy and more.
McKesson’s large number of SKUs and multi-piece orders led to high labor costs and accuracy issues.
Manhattan’s Slotting Optimization provided the tools to create and continuously update highly efficient layouts.
Picking efficiency rose 15% following implementation, even as labor costs dropped. Order defects at one facility dropped from 750 per million to 200.