CASE STUDY

McKesson uses CLM to drive Operational Efficiencies for its Supply Chain

McKesson Medical-Surgical distributes medical-surgical supplies, clinical products, and lab equipment to healthcare providers. While already thriving, the McKesson team knew they could optimize their distribution process.

 

Starting off with CLM implementation, they followed the initial project with a series of phased releases. In effect, McKesson embraced a strategy focused on continuous improvement initiatives.

 

McKesson knew it had to improve efficiency, and completely change its method of interacting with vendors. In doing so, it would expand its footprint in the market to bring more value to the customer.

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The Challenge

The company started a high-level initiative where it discarded all of its rudimentary CLM spreadsheet, applications, rules and manual processes and started from a clean slate in a bid to boost its digital innovation, using best-of-breed CLM technology, spurring the onboarding of new vendors and products that reinforces the way the company delivered value.

Rather than following its normal procedures and partner with a large, established consultancy, McKesson decided that it could more effectively envision technology implementation on projects by teaming with a boutique firms to jump-start its CLM digital innovation initiative.  The high-level staffing and talent approach would be “internal versatilist,” led by Mainspring as its CLM boutique firm of choice.

Our Solution

Partnering with Mainspring, McKesson designed, configured and implemented a CLM solution that supports process-based approach for Buy-side contracts from contract request through authoring, redlining and approvals through execution, with a CLM Business Analyst putting on the glasses of a Contract Facilitator and essentially getting a hands-on feel of the new CLM application. Typically, design review sessions and requirements pose challenges in missing key usability aspects if done on paper using screen shots.  Instead, through iterative, collaborative firsthand feel of the application, the user experience is keenly observed to enhance and mitigate risks related to user adoption. The idea is to conduct and actively participate in these reviews so feedback can be solicited, frequently and often. Ongoing enhancements and iterative releases of the CLM application are delivered in conjunction with the ingestion and migration of over 25,000 contracts.

The Results

Customers are buying into McKesson’s vision of serving as a proactive business partner that works aggressively to offer Health Care providers options for reducing supply chain costs and increasing reliability for delivery of supplies. Through digitization of its Supply Chain, starting with CLM, McKesson has found that it can now have interactions in a different way with high-level executives at end customers. For McKesson, innovation continues to supplement traditional approaches, including an easier contracting mechanism with vendors and customers that creates differentiation with customers. For McKesson, this is only the beginning as it continues to expand its CLM functionality while adding innovative tools across the organization.

CLM is Journey not a Destination

Even the best enterprise solutions can hit “CLM Inertia” if everyone isn’t on board. With Mainspring, our continuous improvement initiatives help nurture a culture that embraces CLM, making success inevitable.