How McKesson Built Supply Resilience With Automation

McKesson operates one of the Healthcare sector's most complex distribution networks. The company handles more than a third of all prescriptions dispensed across the United States and manages relationships with thousands of suppliers and healthcare providers.

According to the company's Fiscal Year 2026 Impact Report, McKesson achieved more than 99% inventory and order accuracy while distributing one-third of America's medicines. The report documents how the organisation embedded procurement strategy and supply chain operations throughout its corporate framework.

McKesson employs more than 43,000 people worldwide. The company structures its operations around four impact pillars: Our People, Our Partners, Our Community and Our Planet.

"At McKesson, impact is at the heart of our strategy and embedded in how we operate every day," says Nimesh Jhaveri, Executive Vice President and Chief Impact Officer at McKesson. "This year's report reflects our progress in strengthening healthcare for the providers, patients and communities we serve today, while building the capabilities needed for tomorrow."

Automated distribution network performance

McKesson built its distribution capabilities around an automated, digitally connected infrastructure. The network operates across multiple temperature zones to accommodate different product requirements.

In FY26, the system prevented 12 million prescriptions from being abandoned. This could show how inventory management and order fulfilment processes directly affect patient outcomes in the healthcare sector.

Brian Tyler, CEO and Chair of McKesson, writes in the report that the company "is an important part of the healthcare infrastructure, delivering essential medicines and therapies to every care setting – from pharmacies to providers and hospitals".

The company invested in advanced cold-chain capabilities to handle temperature-sensitive products. Tyler notes the organisation is "continuously investing in a digitally enabled supply chain, advanced cold-chain capabilities, automation and AI".

The distribution network must handle the growing complexity of modern therapies. Many new treatments require specific storage conditions and handling protocols that demand upgraded logistics infrastructure.

Supplier and partner collaboration

McKesson works with approximately 3,300 independent oncology providers through The US Oncology Network. The network operates a community-based model designed to position treatment facilities closer to patient populations.

The network gives practices access to innovative therapies and opportunities to participate in clinical trials. It also provides resources to help manage the operational complexity of cancer treatment delivery.

McKesson and the McKesson Foundation contributed more than US$17m to organisations and initiatives across the US and Canada. Employees volunteered for nearly 40,000 hours with more than 700 charitable organisations.

The company's supplier relationships extend beyond traditional procurement. The network requires coordination across multiple stakeholders, including manufacturers, distributors and end-point care facilities.

Workforce development for digital operations

McKesson prepared its workforce for the integration of AI and digital tools across procurement and logistics functions. More than 95% of McKesson's wired employees completed an eight-month learning series focused on digital skills, efficiency and transformation.

The company introduced the McKesson Leadership Prescription. The framework establishes shared behavioural standards and values for operations in a digital environment.

Training programmes could mean the organisation anticipates increased automation in warehousing and distribution processes. The company did not specify which procurement functions would be affected by AI implementation.

Digital skills development may affect how teams manage supplier relationships, process orders and monitor inventory levels. The company positions these capabilities as preparation for future operational requirements.

Sustainability in procurement strategy

McKesson aligned its emissions-reduction targets with the Science-Based Targets Initiative. The company set a target in FY23 to reduce operational Scope 1 and Scope 2 emissions by 50.4% by FY32, relative to an FY20 baseline.

According to the report, McKesson achieved 72% progress toward that goal as of FY26. The company applies proprietary Green Building Standards across its facilities.

Since the scheme's induction, 52 buildings within the company's real estate portfolio have been assessed. The company awarded 17 Green Building Standards certifications.

In FY26, approximately 32% of the electricity used by McKesson buildings was generated from renewable energy sources. The report includes indexes outlining corporate alignment with the Global Reporting Initiative, Sustainability Accounting Standards Board and the Task Force on Climate-related Financial Disclosures frameworks.

Sustainable procurement practices extend across the company's supply chain. The initiatives could affect supplier selection criteria and long-term partnership requirements.