 John Figueroa is President of McKesson U.S. Pharmaceutical. John oversees the business unit's operations and distribution of pharmaceuticals and other healthcare related products to customers in four primary segments: national and regional retail pharmacy chains, hospital providers, retail independent pharmacies and mail pharmacy. John's extensive experience continues to further strengthen McKesson's operational excellence and leading market share position. The U.S. Pharmaceutical business generates more than $86 billion in annual revenue.
John began his career with McKesson in August 1997 as Vice President of Sales for California for McKesson Health Systems. He has held positions of progressive responsibility for McKesson Health Systems to include Group Purchasing Organization national accounts. As Senior Vice President, Customer Operations for the Southwest Region, John headed up the region's sales and operations management for its five pharmaceutical distribution centers. Prior to his current role, John Figueroa was responsible for McKesson's relationships with retail chains (food, drug and mass merchandisers) and mail service customers, the largest and fastest growing segments for McKesson Pharmaceutical representing more than $43 billion in annual revenue. John continues to be responsible for the Pharmaceutical Packaging business located in Memphis, TN and Charlotte, NC as well as Corporate National Accounts and Federal Government sales. In addition, John is a board member on the McKesson Shared Services Council, the HDMA Government Public Policy Council, GS1 US Board of Governors, Boys Hope Girls Hope Board of Directors and sits on the Pepperdine University Business School Board of Visitors Executive Committee.
Prior to joining McKesson, Figueroa was Director of Sales and National Accounts at Baxter Healthcare for seven years. John also served as a Captain in the United States Army. He holds an M.B.A. from Pepperdine University and has been honored as a Distinguished Alumnus. He received a B.A. in English Literature and a B.A. in Political Science from UCLA.
How would you characterize McKesson's supply chain?
McKesson ensures the safe, efficient and cost-effective delivery of medicines to our customers and their
patients. We're able to do this because we fundamentally reinvented our distribution through technology
and process improvements to make it the most efficient and cost-effective system in the world. We have a
Six Sigma program that challenges us to constantly work on new ways to improve our processes and
systems, and have been practicing the Six Sigma principles for 12 years. We will continue to do so in our
effort to create efficiency for ourselves and our customers.
McKesson strives to deliver innovative solutions that make the nation's pharmaceutical supply chain,
already the best in the world, stronger and more secure. As a result, customers benefit from the industry's
leading 99.998% accuracy rate, freeing pharmacy staff to provide more and better patient care.
As North America's largest pharmaceutical distributor, could you describe how McKesson's
pharmaceutical supply chain works?
McKesson's pharmaceutical supply chain starts when we purchase our prescription drugs from the
manufacturer and ends when the medications arrive safely onto pharmacy shelves.
Sound buying practices coupled with advanced technology are the most critical component in our effort to
ensure a secure, accurate and efficient supply chain.
How important is supply chain management to
McKesson's overall business strategy ?
For more than 177 years, we have been at the forefront of
pharmaceutical distribution by anticipating customer
needs, investing in the resources to meet those needs, and
delivering consistently and reliably. As a result, our supply
chain is unmatched in the industry and has become the
backbone of our company. In fact, for the most recent fiscal
year (FY10), McKesson Distribution Solutions generated
97% of total McKesson revenues. We will continue to focus
on innovation in an effort to empower pharmacists to
deliver the highest quality patient care.
What are McKesson's primary Supply Chain
Management focus areas?
As a pharmaceutical distributor, our primary focus is on
medication safety. For McKesson, we founded our
distribution on supply chain integrity because it's the first
line of safety for customers and their patients. Few people
consider distribution's role in medication safety but at
McKesson, we understand how critical it is to a patient's
well-being.
McKesson has the ability to track medications from the
manufacturer to the patient's bedside - what we call a
closed-loop system.
How is McKesson addressing the market's increasing
focus on 'green' supply chains and reducing the
company's carbon footprint?
It's our responsibility as the leader in the industry to serve
as a responsible corporate citizen. Just as we take great
care in the safety and security of our supply chain, we are
careful and thoughtful in minimizing our impact on the
planet.
Our newest pharmaceutical distribution center in the
Chicago area is the first LEED-certified distribution center
and only one of four buildings that is LEED-certified in
Illinois. Among its environmentally friendly features are its
use of recycled building materials, low-flow water fixtures,
natural landscaping, motion-controlled lighting and parking
for fuel-efficient vehicles.
Earlier this year, Walmart recognized McKesson with The
Health and Wellness Supplier of the Year award, which was
a result of our success delivering operational efficiencies,
sustainability improvements and cost savings.
What is the key Supply Chain Management priority for
McKesson in the coming two to three years?
Our industry continues to grow more complex each year
with the rising demands of the marketplace. To meet these
demands, we're enhancing our systems and technology for
greater throughput capability, as well as real-time
information for planning, controlling and optimizing our
supply chain.
An example of our work is the creation of the Chicagoland
distribution center which was designed to increase our
network capacity and deploy the latest in distribution
technology so that McKesson can continue to lead the
industry in supply chain accuracy and efficiency.
What is the key Supply Chain Management priority for
McKesson in the coming five to ten years?
Our vision is to advance our supply chain by shifting
business mindsets. By leveraging sophisticated analytics,
integrated systems and a comprehensive suite of planning
tools, McKesson will be even more proactive when
addressing market and operational trends, make better
decisions based on real-time supply chain intelligence, and
standardize best practices.
What are the biggest INTERNAL challenges for
McKesson to achieve supply chain excellence?
When you achieve 99.998% accuracy in the supply chain,
it can be a challenge to innovate and improve. But we see
room for improvement. McKesson drives that commitment
at all levels. I challenge each of our employees to think
differently and to explore new approaches to increase
efficiency and cost-savings. We can never accept the
mindset that it's just business as usual and will have a
continued focus on cost containment.
What are the biggest EXTERNAL challenges for
McKesson to achieve supply chain excellence?
Managing inventory, specifically drug shortages, can be
frustrating for our customers. As the vital link between
manufacturers and our customers, it's important that we
improve and excel in our communications with our
customers to ensure that we meet their needs. By
leveraging our ability to generate real-time data, we will be
able to share valuable information with payors and
manufacturers, thus improving our supply chain even
more.
What innovative or advanced strategies/technologies does McKesson use to protect the supply
chain?
McKesson is committed to innovative solutions that will make the nation's pharmaceutical supply chain,
already the best in the world, stronger and more secure. When it comes to safety, it's unlikely that any single
effort will prevent counterfeit pharmaceuticals from entering the nation's supply chain. McKesson believes
that a combination of sound buying practices, more stringent licensing standards, stronger criminal
penalties, and the rapid adoption of ePedigrees by all members of the supply chain will significantly
enhance the integrity of the pharmaceutical distribution network.
What trends are you watching in healthcare, and how might they affect your role in the drug supply
chain?
In light of health care reform, there has never been a more critical time in the industry for all parties involved
in healthcare to expand their role in healthcare delivery. The three key pillars of healthcare reform are
access to health, improving the quality of care and reducing costs. We are working with the government,
healthcare providers, pharmacies, consumers and other key stakeholders to remove unnecessary costs
from the healthcare system as we ensure the timely delivery of safe, cost-effective products.
What pharma-side technologies or services are you implementing or experimenting with?
Our distribution performance and quality levels are unparalleled in the industry, and benefit our customers
in the form of better and timelier service, fewer or mostly non-existent errors, and lower costs.
A key area of opportunity for the industry is the rapid adoption of 2D barcode on unit level packaging, and
RFID on cases and pallets. These technologies combined with the use of ePedigrees by all members of the
supply chain will significantly enhance the integrity of the pharmaceutical distribution network. As we've
done for the past several years, we will play a leadership role in the development and implementation of
advanced track-and-trace standards.
I currently serve as Board Vice Chairman for GS1US™, a not-for-profit organization that administers and
develops worldwide standards and solutions for identification numbers, data carriers, electronic
commerce, and global data synchronization.
What special skills are required for distribution in pharmaceuticals?
Innovation and the willingness to adopt innovative approaches are crucial for distribution in
pharmaceuticals, especially when your role is to ensure the safety, effectiveness and accessibility of the
nation's healthcare system. As the healthcare industry evolves, we must also evolve so that we can help to
ensure a healthcare system that works for all of us.
In addition, it's important to be able to respond swiftly and effectively to highly variable demands. For
example, in 2009, McKesson partnered with the Centers for Disease Control and Prevention (CDC) to help
prevent the spread of the H1N1 flu virus. From October 2009 through March 2010, McKesson distributed
millions of doses of vaccines to over 140,000 providers across the nation.
What similarities do you see in the distribution of pharmaceuticals and other commodities?
No matter what business you're in, innovation should always be your goal. If I've learned one thing in my 20
years in the industry, it's that if you're not innovating, you're just standing still. And, no one, or no company,
ever got anywhere by doing that.
How do you prepare for the upturn now that the economy is showing improvements?
McKesson runs a lean operation and is very cost-conscious, which allows us to focus on our ultimate goal
of improving the quality, safety and efficiency of the healthcare system regardless of how the economy is
doing.
To achieve our goals, we manage the business against four objectives:
- Keeping existing business
- Driving new business
- Maximizing our value by delivering solutions in adjacent markets
- nvesting in healthcare
What are the main skills and personal attributes that have helped you reach your current position?
My motto for business and personal life is to maintain all relationships based on integrity. It's important that
you treat everyone, no matter what level, with respect and integrity.
I also believe that one must possess not only a strong work ethic, but a smart work ethic in order to succeed.
It's not about boiling the ocean, but boiling the water you need.
What are your thoughts regarding globalization?
McKesson is the #1 in pharmaceutical distribution in U.S. and Canada, and a leading distributor in Mexico.
A key area of focus for McKesson continues to be global sourcing. This may seem unusual at first, but if you
think about it, if you're able to source drugs and medical supplies at optimal prices, this can help drive
greater cost efficiencies throughout the supply chain, benefiting providers, patients, and payors alike.
When healthcare is more affordable, it will become more accessible.
What would you say is the most rewarding experience you've had in your career?
In 2009, the CDC tapped McKesson to help the federal government respond quickly and effectively to the
spread of the H1N1 flu virus. 127 million doses of H1N1 vaccine were distributed from October 2009
through March 2010.
Our teams worked tirelessly to build a dedicated distribution network in a matter of weeks. We set up and
staffed six new distribution centers to handle vaccines and accompanying supplies. We couldn't have
made this happen without the sacrifice and dedication of our employees. I was proud to be making such an
important difference in helping to save lives and keep Americans healthy.
In addition to overseeing McKesson's US Pharmaceutical business, I'm a former Army Captain and work
with many veterans at McKesson. Internally, we have a national veterans employee resource group that
connects veterans across the company for networking, career growth, and business development
opportunities. McKesson's veterans donated $7K to a Marine Corps helicopter unit for their homecoming.
Externally, McKesson US Pharmaceutical has been supplying the U.S. Department of Veterans Affairs for
the last six years, in addition to working closely with veteran-owned businesses.It's these types of
commitment from McKesson that makes the place so great and my experiences rich.
What have you learned as the President of McKesson US Pharmaceutical that has surprised you or
changed the way you do business?
I learned early on that attention to detail is very important and realized that as President, I scrutinize over
details even more.
What does it take to build the kind of career you have had?
Embrace the role of a student. For me, I had to gain exposure to all areas of the business and learn to
continuously ask the important questions. Throughout my career, I valued a rotational approach to career
advancement versus a more traditional, vertical route. I was open to working in different business
segments, making parallel moves, so that I could learn and appreciate the roles that various business
functions play and the value they bring to the overall business.
Who do you rely on for advice?
My staff. You can only achieve success if you hire the right people, allow them to do their job, and rely on
them for advice.
During this economic downturn, how do you keep your entire organization motivated?
As I mentioned earlier, McKesson runs a lean operation and as result, we did not reduce headcount during
the recent economic downturn. At all times, we continue to invest in high performers.
How do you balance your work life with your personal life?
I balance my time between work and family.
What kind of qualities do you look for in a person who you would consider adding to your team?
Results-oriented, strong work ethic and an open mind. People who challenge decisions and question the
status quo are always welcomed. It can be intimidating for someone to join our team given its unrivalled
supply chain but there's always room for improvement. I'm always looking for individuals who drive at
innovation and are focused on delivering results. McKesson needs people who can advance our efforts to
avoid complacency or don't prematurely celebrate our success.
What is the most exciting aspect of McKesson?
What gets me personally excited is how McKesson can help advance the delivery of care. Helping
providers improve the delivery of care is dependent on getting providers to embrace and adopt advanced
technologies and approaches that will ultimately help them increase safety, improve operational
efficiencies, and cut costs. For example, we're focused on delivering a variety of solutions that help
pharmacies with everything from barcode scanning for greater patient safety, to automated medication
dispensing cabinets, to unit-dose packaging.
McKesson has a unique opportunity to drive new innovations that will make healthcare work better. Ten
years ago, McKesson's total revenues were $42B and today they reached $109B. I can't wait to see what
we can accomplish in the next decade.
Where are the opportunities for healthcare innovation?
One area of innovation that McKesson focuses on directly affects consumer behavior, specifically
influencing healthy decisions made by individuals. For example, through technology, we're making it
possible for pharmacists to offer a variety of medication adherence services that deliver benefits for the
patient, the pharmacist and for payors and manufacturers.
Through Health Mart, McKesson's franchise of independently-owned pharmacies, when a pharmacist
spends 5-10 minutes with a patient to ensure their patients understand how to take their medication for the
best possible outcome, they can now get reimbursed by payors or manufacturers. This is a win-win-win-win
situation for patients, pharmacists, payors and manufacturers. |
