McKesson Improves Pharmaceutical WMS Slotting Efficiency 15%

Case studies

WMS

McKesson Improves Pharmaceutical WMS Slotting Efficiency 15%

Case study showing how Manhattan Slotting Optimization reduced travel, labor, and defects for McKesson's 27 pharmaceutical DCs handling high-SKU, multi-piece orders.

Published

June 4, 2026

Read time

3 min read

Source

Manhattan Associates

McKesson, the largest U.S. pharmaceutical distributor, implemented Manhattan Associates Slotting Optimization across 27 distribution centers. The solution dynamically assigns SKUs to optimal pick locations using velocity, size, and seasonal demand data. Results included 15% higher picking productivity, reduced headcount, and a drop in defects per million from 750 to 200 while maintaining next-day delivery commitments.

Key takeaways

Slotting Optimization grouped like items and placed fast movers in ergonomic pick zones to cut travel distance.

Monthly slotting reviews and dedicated resources kept layouts aligned with changing demand patterns.

Picking efficiency rose 15% and labor requirements dropped at multiple facilities after re-slotting.

Order defects fell from 750 to 200 per million opportunities at one site, improving accuracy.

Integration with labor management further enhanced ongoing slotting decisions and productivity.

Market overview

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