McKesson opens largest distribution facility in its network

By Ben Hargreaves

- Last updated on GMT

© KeithBinns / Getty Images
© KeithBinns / Getty Images

Related tags: McKesson, distribution, Logistics, OTC

The company officially unveils its pharmaceutical distribution center that is based in Jeffersonville, Ohio.

McKesson Corporation announced that the facility will distribute pharmaceutical, over-the-counter and home healthcare products, as well as consumer packaged goods to customers in the US.

The states covered by distribution include Ohio, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.

The facility will be based on 40 acres of land, with the distribution center covering 475,000-square-feet of space. Now that the space is open, it becomes the largest distribution space in McKesson’s network, more than doubling the volume compared to the company’s next largest space.

According to Ammie McAsey, SVP of distribution operations, the company outfitted the site with automation capabilities that will make operational processes less labor intensive and more efficient.

The company stated that this will include automated putaway, replenishment and order filling processes, as well as a tote washer and robotic palletizer to handle volume increases and growth over time. By increasing automation, employees would be “able to focus on more fulfilling tasks that have a more direct impact on customer orders,” the company stated.

McKesson also drew attention to the fact that the center will house sustainability features, which includes a roof structure design to accommodate solar panels, electric car charging, LED lighting, low-flow plumbing fixtures, and motion sensors to reduce unnecessary water and electricity usage.

On the announcement, Senator for Ohio, Bob Peterson, stated, “The facility features cutting-edge sustainability and automation technology that support a safe and productive work environment. McKesson’s continued investment here brings tremendous economic development to the county and Ohio.”

Moving on from opioid lawsuits

However, it was not so long ago that the state was celebrating a settlement agreement against McKesson, alongside Cardinal Health and AmerisourceBergen, over their roles in the opioid epidemic​.

The agreement sees Ohio settle its part of the national universal case against the companies and sets it up to receive $808m (€801m). Approximately 39,000 Ohioans died from an opioid overdose between 2000 and 2020.

At the time, the state outlined that the framework for the settlement would see 30% of the funds go to local governments, 15% to the state and 55% to a foundation that provides opioid-related grants for programming throughout the state. The payments to the state will be made over the course of 18 years.

Earlier this year, McKesson announced that 46 of 49 states and over 90% of litigating political subdivisions had participated in a $19.5bn settlement to also be paid over 18 years regarding opioid lawsuits. According to the company, this meant that the ‘majority’ of opioid lawsuits would be settled.

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