McKesson Corporation is the largest distributor of pharmaceuticals, medical supplies and healthcare information technologies in the United States. McKesson delivers prescription and generic drugs, in addition to health and beauty care products to more than 40,000 retail pharmacies in the nation. In addition to providing prescription drugs, this company also wholesales medical supplies to doctors’ offices and surgery centers while providing software and technical services to help health care providers and insurers manage supply chain. The company was founded in 1833 by John McKesson and Charles Olcott in New York City. Both wanted to focus on importing and wholesaling pharmaceutical products. Now, the company is made up of a number of businesses, proving to be extremely successful. According to the New York Times, this company operates in two segments. The McKesson Distribution Solutions is the segment that distributes health and beauty care products, drugs, medical-surgical supplies and equipment. The McKesson Technology Solutions segment includes enterprise clinical, patient care, financial, supply chain, strategic management software solutions, and pharmacy automation for hospitals. McKesson does have a vertical marketing system, where the systems provide channel leadership and consist of producers, wholesalers, and retailers. McKesson’s role in the system is the wholesaler, where the company wholesales pharmaceuticals and other health important health products to pharmacies and health centers. Wholesaling is crucial in the distribution channel for many products. The channel sells directly to the retailer, but not directly to the consumer. This company brings together all resources to establish pharmacies, providing them with the necessary tools.
McKesson’s system is an administered marketing system, where channel members are independently organized. McKesson Corporation is the channel leader, where the different parts of the channel...
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