Problem Statement

CVS is a supplier of pharmaceutical products working at the pharmacy through its

operational services in Rhode Island. Currently, the company is facing problem on
its operational side which are functioning unwell and due to these issues customers
got highly disappointed from pharmacy services.
This situation has moved CVS towards severe customer loss which is shrinking the
company’s growth opportunities and pushing it towards financial losses. The
existing scenario states that the company is unable to fulfill customer’s
requirements along with the unskilled staff, customer care staff and maintained
operational devices. The pharmacy service improvement (PSI) team has recognized
the current prescription contentment process, its exemption charges, and
the problems generated by these exemptions. The company is planning to modify
its processes, and what material changes its informational system requires to make
in support of restructuring its process.
Introduction
As it has been mentioned earlier that the Consumer value store (CVS) is going
through the phase of increased client’s grievances that is hindering the company to
obtain more market share and growth opportunities. The problematic area in the
beginning was supposed to be due to poor customer service. Conversely, with the
help of PSI’s investigational research over the CVS’s past customers and employees
experiences and consultations provided to them through pharmacy staff has
changed the direction of PSI’s scrutiny. This investigation suggests that the main
problem in consumer value store was with their data entry system and their
customer care employees collectively presumed it as the issues with operational
managers and executives.
However, the pharmacy directors, chief pharmacists and their consultants from the
Boston Consulting Group were having an opinion that the key problem exists in the
order fulfillment process that resulted in customer disappointment. The Pharmacy
team was immense, putting their level best to resolve CVS’s operational and
managerial related problems.  The enduring portion of this case study discusses
the key factor originated in the gratification of the process and sanctioned steps to
solve those main problems.
Failure of Management to Satisfy Customer:
 The following are the reasons identified by the PSI’s team in order to know the
level of customer’s satisfaction regarding the delay in the record maintaining and
response from the physician.
a. Illegitimate replenishments
Customers are often unable to keep track of their refills Adding up with the normal
day,  on average to get a response from a doctor whether a refill was allowed or
not. This situation caused customers to become irritated.
b. Rejection of Scripts for payment by insurance.
 The payment makers wanted to control their costs with the help of long rules
about drugs, refilling time and cash collection conditions truly complicated the work
of pharmacy employees therefore extended the waiting time for a refill. At the
same time, the customers might not be sufficiently responsive of these rules and
requirements of payment through an insurance company. Until and unless, the
pickup came to the customer for prescriptions, over the customer was conversant
by the store employees about the situation, which was beyond their anticipation.
c. DUR hard stop problem.
The wrong feeding of customer’s data was due to the written errors in the scripts, a
DUR that stores customer's prescription record has generated false results. Due to
these incorrect subscriptions pharmacy employees had to consult with each doctor
individually to solve this issue, which would take extra time for progression.
However, the customers did not expect nor even possessed such an idea.
Alternatives
Short Action plan:
Currently the CVS Company must invest on the effectiveness of their sales force
that will contribute positively to improve their customer service process.
Long-term strategy:
The company must invest on the online information storage system that is
technically flexible and automatically store data for a single patient at the time of
refills. The company must use innovative technology in which customer’s data
would be attained in a short period of time with their identical social security
number.
CVS in 2000 due to service were light versus heavy users
PSI suggests that if the CVS’s company will give importance to improve its services
then they would be able to prevent customer loss. The Customer value services
were losing their customer with an alarming percentage of 60-90.........................