Case Study: McKesson Health Solutions achieves 15% higher picking efficiency and slashes defects with Manhattan Associates' Slotting Optimization

McKesson moves medicine in record time with Manhattan Associates

McKesson, one of the largest pharmaceutical distributors in the U.S. with headquarters in San Francisco and 29 distribution centers serving 25,000+ pharmacies and healthcare customers, faced rising complexity from a growing SKU base and orders made up of many individual pieces. Limited facility space, heavy picker travel and next‑day delivery commitments were driving high labor costs and order accuracy problems.

McKesson implemented Manhattan’s Slotting Optimization to continuously place SKUs by velocity, size and seasonality, group like items, and locate fast movers in the most accessible positions, with ongoing re‑slotting and integration with labor management. The change boosted picking efficiency by up to 15% (14.8% in one three‑month comparison), reduced headcount in several areas (e.g., selectors from 19 to 17; OTC from 8 to 6) and cut defects from 750 to 200 per million, speeding fulfillment and improving accuracy.

McKesson Health Solutions

Kevin Patterson

Vice President Distribution Operations Support