1	Closed Loop Distribution Attacks Cost and Quality Issues Presented by Tom Magill
2	McKesson Corporation -Background World’s leading supply management and healthcare information technology company Fortune 18 Company $90 Billion in 2007 fiscal year sales Established in 1833 Headquarters - San Francisco, California
3	McKesson Pharmaceutical Distribution 31 Distribution Centers 30,000 Customers 2,500 Courier drivers 1 million order lines shipped daily 6+ Million deliveries annually
4	Closed Loop Distribution
5	Closed Loop Distribution System Utilizes Ruggedized Palm device with imbedded Symbol laser scanner and optional radio Full suite of Order Management and Inventory Control functions Incorporates the AvantGo solution for Sync and off-line web browsing for the Palm In use since June 1999
6	Closed Loop Distribution Modules Customer Solution Ordering Receiving Item Search Physical Inventory Credit Request Shelf Label Request Price Sticker Request Retail Price Change Driver Solution Load Truck Delivery Pickup
7	Symbol Palm Device Supports Batch, WLAN, WAN Ruggedized for: Temperature range -4° F to 122° F Rain and windblown dust resistant seals Four foot drop to concrete Imbedded aggressive laser scanner Rechargeable and long life batteries
8	Mobile Ordering
9	Mobile Ordering (cont)
10	Mobile Ordering Benefits Immediate item quantity acknowledgment upon order submission Summary sales & item detail data available Last order date and order frequency Average order quantity during the past 12 months Incorrect item and quantity errors minimized Full case orders increased (case suggestion) Maintains multiple adjustable templates
11	Mobile Delivery
12	Mobile Delivery (cont)
13	Mobile Delivery Benefits Reduces shortage claims Eliminates misdirected containers Paperwork vanishes Provides date/time and receiver information Captures signature electronically Proof of deliver available on-line via Internet Provides data for managing drivers Enhances Customer/Driver satisfaction
14	Mobile Receiving
15	Mobile Receiving (cont)
16	Mobile Receiving Benefits Electronic reconciliation by tote 100% receiving accuracy via scanning Receipt data available for export to customer Efficiency gains up to 50-90% possible High dollar/random/blind receiving supported Key entry of data to other systems avoided Pharmacists can delegate to administrative personnel
17	Project Statistics Research - 8 months Prototype design & build -10 months Customer & Driver Beta - 5 months Tune and production ready - 10 months Driver rollout - 18 months Customer rollout - ongoing Project cost - $35 million for full rollout