Case Study: McKesson Canada achieves millions in operating cash flow improvements and reduced inventory with Blue Yonder

McKesson Canada Optimizes Demand and Supply Planning

McKesson Canada, a leading national distributor delivering more than one-third of prescription drugs in Canada and managing over 250,000 SKUs, faced an outdated legacy system that limited its ability to optimize inbound shipments and inventory across 13 distribution centers. The company needed new technology to support growing customer demand, improve accuracy and efficiency, and better manage billions of dollars in product acquisitions and more than $1 billion in inventory.

Partnering with Blue Yonder, McKesson implemented advanced demand forecasting, supply planning and replenishment with automation and patented algorithms tailored to varied sales patterns. The solution increased forecast accuracy and fill rates, reduced inventory and inbound lines to DCs by over 10%, improved receiving throughput by 10%, and delivered millions of dollars in operating cash‑flow improvements while automating approvals for roughly 45% of the product portfolio.

Mckesson Canada