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McKesson consolidates Ontario distribution network
July 12th, 2013
MONTREAL – McKesson Canada said it's restructuring its Ontario distribution network to better serve its customers and and position itself for future growth.
The pharmaceutical wholesaler said Friday that over the coming year it will be consolidating its operations from five facilities in Ontario to four distribution centers in Brampton, Trenton, Ottawa and Chatham.
As a part of the initiative, a new, state-of-the-art distribution center is being constructed in Trenton (Quinte West), Ontario. McKesson Canada said the new facility will allow the company to boost capacity to better serve customers while operating more efficiently.
"As market conditions and regulatory requirements continue to shape the Canadian health care landscape, we felt that optimizing our network and investing significantly in our infrastructure was the right decision for McKesson Canada," Nick Loporcaro, president of McKesson Canada, said in a statement. "This will allow us to increase our capacity, improve our efficiency and ensure we are appropriately positioned to adapt to a transforming environment."
Plans call for the Mississauga distribution center to close in the spring of 2014, resulting in 190 job cuts. Additional job losses are also slated to occur at the Brampton, Chatham and Ottawa facilities in the coming months, McKesson Canada said.
"This is a challenging day for the McKesson Canada family," Lopocaro stated. "We understand that these business decisions have a high impact on the personal and professional lives of our employees. We are committed to providing them with the best available care throughout the transition."