EPISODE · May 22, 2026 · 9 MIN
How McKesson Mastered Pharmaceutical Distribution
from The Operations Podcast with Fexingo: Process, People, and Profit in Modern Business · host Fexingo
In this episode, Lucas and Luna dive into the operational genius behind McKesson—one of the world's largest pharmaceutical distributors. They explore how the company's massive DC in Olive Branch, Mississippi, processes over 100,000 unique SKUs daily with 99.9% accuracy. From the 'tote-and-chute' system to the real-time inventory algorithms that prevent drug shortages, Lucas breaks down the engineering of a supply chain most of us never see. They discuss the thin margins—around 1.5%—and how scale and precision make the business profitable. Luna asks about the bottlenecks in hospital logistics and the role of automation vs. human judgment. The episode also touches on the 2020 pandemic stress test that revealed just how resilient (and brittle) these networks can be. A fascinating look at the invisible infrastructure that gets your prescription from the manufacturer to your pharmacy. #McKesson #PharmaceuticalDistribution #SupplyChain #Operations #HealthcareLogistics #InventoryManagement #Automation #Warehouse #OliveBranch #DrugShortage #Business #BusinessPodcast #FexingoBusiness #OperationsPodcast #LucasAndLuna #ProcessPeopleProfit #DistributionCenter #PrescriptionSupplyChain Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
In this episode, Lucas and Luna dive into the operational genius behind McKesson—one of the world's largest pharmaceutical distributors. They explore how the company's massive DC in Olive Branch, Mississippi, processes over 100,000 unique SKUs daily with 99.9% accuracy. From the 'tote-and-chute' system to the real-time inventory algorithms that prevent drug shortages, Lucas breaks down the engineering of a supply chain most of us never see. They discuss the thin margins—around 1.5%—and how scale and precision make the business profitable. Luna asks about the bottlenecks in hospital logistics and the role of automation vs. human judgment. The episode also touches on the 2020 pandemic stress test that revealed just how resilient (and brittle) these networks can be. A fascinating look at the invisible infrastructure that gets your prescription from the manufacturer to your pharmacy. #McKesson #PharmaceuticalDistribution #SupplyChain #Operations #HealthcareLogistics #InventoryManagement #Automation #Warehouse #OliveBranch #DrugShortage #Business #BusinessPodcast #FexingoBusiness #OperationsPodcast #LucasAndLuna #ProcessPeopleProfit #DistributionCenter #PrescriptionSupplyChain Keep every episode free: buymeacoffee.com/fexingo
NOW PLAYING
How McKesson Mastered Pharmaceutical Distribution
No transcript for this episode yet
Similar Episodes
Mar 26, 2026 ·1m
Mar 19, 2026 ·34m
Feb 18, 2026 ·11m
Feb 11, 2026 ·45m