McKesson Corporation

Reduces its energy footprint and waste with supply chain sustainability management

Published on 03-Aug-2010

Validated on 15 Aug 2013

"These tools will provide the industry-leading insight we need to continue identifying new ways to reduce our energy consumption and waste. " - Nathan Mott, vice president of business process, McKesson Corporation

Customer:
McKesson Corporation

Industry:
Healthcare, Life Sciences, Consumer Products, Wholesale Distribution & Services

Deployment country:
United States

Solution:
Smarter Planet

Smarter Planet:
Smarter Healthcare, Smarter Supply Chain

Overview

McKesson Corporation is the world’s largest healthcare services company and the largest pharmaceutical distributor in North America—providing one-third of the medicine used there every day, as well as supplying more than 40,000 U.S. pharmacy locations.

Business need:
McKesson is committed to protecting the environment, but its vast supply chain makes it difficult to identify the most promising approaches to reducing energy consumption and waste.

Solution:
McKesson is adopting a supply chain sustainability management solution to measure and analyze environmental impact throughout its distribution network—including warehousing, transportation and end-of-life product returns. The solution will identify the most cost-effective actions to reduce greenhouse gas emissions, water use, energy consumption and waste disposal.

Benefits:
• Creates greener product flow through comprehensive reporting and analytics of every step in the supply chain
• Expands the options for sustainability with tools that allow what-if modeling by site, region, product family, department and more
• Widens the circle of employees who can participate in protecting the environment by providing a web-based system for entering and understanding supply chain data

Case Study

McKesson Corporation
San Francisco, California, United States
Life Sciences; Healthcare
www.mckesson.com

Solution Components
• IBM Cognos® Business Intelligence
• IBM DB2®
• IBM WebSphere® Application Server
• IBM Research


McKesson Corporation is the world’s largest healthcare services company and the largest pharmaceutical distributor in North America, providing one-third of the medicine used every day in North America, as well as supplying more than 40,000 U.S. pharmacy locations.

The Need
McKesson is committed to protecting the environment, but its vast supply chain makes it difficult to identify the most promising approaches to reducing energy consumption and waste.

The Solution
McKesson is adopting a supply chain sustainability management solution to measure and analyze environmental impact throughout its distribution network, including warehousing, transportation and end-of-life product returns. The solution will identify the most cost-effective actions to reduce greenhouse gas emissions, water use, energy consumption and waste disposal. In cases of investments eligible for creating carbon certificates, the solution can help with carbon emission calculation and carbon credit revenue projection.

What Makes It Smarter

  • Creates greener product flow through comprehensive reporting and analytics of every step in the supply chain, quantifying the impact of changes in logistics policies on operating costs and the environment
  • Expands the options for sustainability with tools that allow what-if modeling by site, region, product family, department and more
  • Widens the circle of employees who can participate in protecting the environment by providing a web-based system for entering and understanding supply chain data

"These tools will provide the industry-leading insight we need to continue identifying new ways to reduce our energy consumption and waste." — Nathan Mott, vice president of business process, McKesson Corporation

For more information
Contact your IBM sales representative or IBM Business Partner. Visit us at:

ibm.com/healthcare

Products and services used

IBM products and services that were used in this case study.

Software:
Cognos 8 Business Intelligence, WebSphere Application Server

Legal Information

© Copyright IBM Corporation 2010

IBM Corporation
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Produced in the United States of America
July 2010
All Rights Reserved.

IBM, the IBM logo, ibm.com, Let’s Build A Smarter Planet, Smarter Planet, and the planet icons are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml.

References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.

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