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Pharmaceutical industry

McKesson Corp. Signs $1 Billion Contract with Albertson's Inc.

Strategic Insights

— 1 min read

McKesson Corp. and Albertson's Inc. have solidified their partnership with a five-year, $1 billion contract for the supply of pharmaceuticals and other drug store items to Albertson's 455 supermarkets nationwide. This agreement highlights McKesson's commitment to providing value-added services, leveraging advanced technology to streamline the ordering process and enhance inventory management. The partnership is expected to bring long-term benefits to both companies, with McKesson's leadership in creating new market opportunities complementing Albertson's expertise in the retail pharmacy sector.

Key Takeaways:

  • The contract is a five-year agreement with a total value of $1 billion.
  • Albertson's 455 supermarkets will be supplied with pharmaceuticals and other items from McKesson's 36 distribution centers nationwide.
  • McKesson will handle Albertson's dock-to-dock pharmacy warehousing business as part of the contract.
  • The company will utilize an advanced interactive electronic order-entry system to enable Albertson's pharmacies to order products and track inventory in real-time.
  • Albertson's will be able to monitor product movement throughout its in-store retail pharmacy system from its corporate headquarters in Boise, Idaho.
  • The partnership is expected to leverage McKesson's reputation as a leader in creating new market opportunities, complementing Albertson's expertise in the retail pharmacy sector.
  • McKesson will serve the Albertson's pharmacies on a daily basis, with each location able to access McKesson's inventory through the electronic order-entry system.
  • The contract is a major endorsement of McKesson's value-added services and commitment to providing innovative solutions to the healthcare industry.

Statistics:

  • Albertson's operates 720 stores in 19 western, midwestern, and southern states.
  • The company has annual sales of $11.9 billion.
  • McKesson Corp. has annual revenues of $13 billion.
  • The company ranks as the largest distributor of pharmaceuticals and health care products in North America.
  • McKesson Water Products Co. is one of the largest distributors of bottled drinking water in the U.S.
  • Armor All Products (Nasdaq: ARMR) is the world leader in automotive appearance products, with McKesson owning 55% of the company.

Sources:

  • McKesson Corp. (NYSE: MCK)
  • Albertson's Inc.
  • PRNewswire (April 11, 1995)
  • McKesson Water Products Co.
  • Armor All Products (Nasdaq: ARMR)

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