McKesson Corporation: Distribution Strategies and Global Expansion

This case study examines McKesson Corporation's distribution strategies and global operations, emphasizing the importance of efficient logistics and market expansion. The analysis suggests that McKesson should focus on distributing directly to local wholesalers, hospitals, and community health workers, while also leveraging a customer database to optimize resource allocation. Different modes of transport are evaluated based on product sensitivity and urgency, including air freight for perishables and shipping for bulky goods. The study highlights the significance of transportation choices in maintaining supply chain consistency and client satisfaction. Furthermore, the document includes an executive summary discussing McKesson's global operations in Canada and North America, touching upon INCOTERMS and the role of a global logistics manager in understanding international functions, customs, and freight operations.

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McKesson Corporation
McKesson is an American company that distributes pharmaceuticals, provides health
information, medical supplies and care management tools. It is arguably the oldest and largest
healthcare company in the US. McKesson should consider distributing to local wholesalers in the
US to increase sales which in turn will spread to the local distributors. They can also distribute
them to admitted patients in hospitals, outpatient clinics, health centres or community health
workers hence the drugs get to consumers directly ("Third-Party Logistics (3PL) For Specialty
Biopharma Companies"). Also, McKesson should look into distributing resources based on a
timeline. However, this will only be possible if they have a database of their regular customers
and clients. This enables the company to know when they are running out of supply. As a
company, they should also try and look for other markets which are less competitive and
establish their distribution in those areas.
The business conducted by McKesson is delicate, and so is the transportation of its
products. Pharmaceutical products are very sensitive, this is because there exists different types
of medicine. Depending on the medicine, others need to transported quickly while others can
take time to get their destination. So the logistic personnel need to be very careful when selecting
the mode of transport to be used (Management Distribution 23). The supply department should
select the mode of transportation carefully and also. Furthermore, deliveries ought to be
scheduled in an organized and way for an effective and functional service. There are different

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modes of transport which include flight, water, railway, on and off-road vehicles, and porters as
well. It is all dependent on the type of products being supplied.
When transporting perishable goods, it is important to consider using freight or air due to
their delicate nature so that they arrive when in a good state. Shipping is an option when
transporting goods in faraway countries. Shipping also comes in handy when transporting bulky
goods as well. The logistics personnel can also consider roads as a mode of transport for
emergency purposes since road are highly reliable and convenient (Management Distribution
28). It is also important for the department to be aware of the condition of the vehicles, the fuel
levels, the state of the drivers and their hygiene. This is because the drivers will get in contact
with the supplies hence their hygiene needs to be taken into consideration during transportation.
The railway can also be considered when transporting goods that need to go to states or towns
that are far away. However, this needs utmost care to avoid the supplies from going bad due to
the much time they will take while being transported.
The logistics personnel need to be careful when selecting the mode of transport to be
used in distribution to ensure arrival of the goods when in the correct state. Additionally, the
products should arrive in time in case of an emergency. The mode of transport plays a significant
role in maintaining consistency and keeping a good rapport with the clients because it ensures an
uninterrupted chain of supply.

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Works Cited
Management Distribution. 1st ed., Management Sciences For Health, 2018, pp. 22-30,
https://www.msh.org/sites/msh.org/files/mds3-ch22-distribution-mar2012.pdf. Accessed
9 Oct 2018.
"Third-Party Logistics (3PL) For Specialty Biopharma Companies". Mckesson.Com, 2018,
https://www.mckesson.com/biopharma/third-party-logistics/. Accessed 9 Oct 2018.