Case Analysis -

Pharmacy Service
Improvement at
CVS(A)
Sayed Firoz Ahmad - 2022PGP346
Pranita Naskar - 2019IPM087
Jasneet Kaur-2022PGP589
Pushkaran-2022PGP301
Vishal Das - 2022PGP580
Section C | Group 9
Company
Overview
First consumer value store opened in Lowell ,
Massachusetts in 1963. By 2002 CVS was
America's largest retail drug store with over
4.000 stores and revenue of 24.2 billion dollars
over two third of this revenue was generated by
the subsidiary of CVS knows as CVS pharmacy.

The company saw a steady increase in net

margins but during 2001 it fell to 1.86 %
 Fullfillment Process

DROP DATA Produc

QA PICKUP DELIVERY
OFF ENTRY tion

After QA each
Customers Each hour the After production completed
drop offs a tech takes the The drugs to a pharmacist script was At last the
script and the scripts from the fullfill the script reviews each sealed in a bag customer would
tech wrote the box and were counted script to make and bags were receive the bag
requeseted entered all the
and verified by sure that it stored in pickup at the receiving
pickup time on required data
about them into
the certified contains exactly area when window with
the script and
the pharmacy pharmacy the right drugs customer correct
put it in a box
information technicians in in the right arrives to pick medicines
that was
system which the prodcution quantity and all the staff would according to the
divided into
was used by all area other details search the right prescription
number of
CVS pharmacy were correct bag for the
slots
stores customer
Problems
CVS Pharmacy faced deterioration in its operational performance, lacked
in efficiency. Neither the employees nor the customers were satisfied
from the services.

Concern lied in the prescription fulfillment process that was lengthy and
was not capable of providing prescriptions on time to the customers.

There were inconsistencies faced in different stages of the process: At the

drop off window, data entry process, pick up window. There were issues of
unfulfilled orders , longer wait time of customers at the pick up window.

There were issues while third party payment verifications, drug

interaction safety checks

CVS lacked Capable IT system that could cater to heavy users.

Implications of the
Problems
01 02 03 04
Customer leaving Low Employee Unnecessary Work Inability to
CVS Pharmacies Retention Rate and Inefficiencies handle peak
periods
7.2 Million Regular Working in the Despite the Insurance-
Customers left CVS pharmacy was stressful rejection fulfilment From 5 pm to 7 pm
each year which and unpleasant; process would continue, during peak times -
amounted to revenue of Employees left within 1 employees had to 1. Unavailability of Staff
$2.5 Billion. year of joining. manually identify and 2. Long Queue for
correct it. customers
 Possible Solutions
Train the technical staff that handles the after-work pick-up window and pay them
a higher compensation to increase their willingness to work

Adopt a robust and sophisticated IT system that would reduce the work load of
pharmacists and data-entry technicians like by suggesting recommended action for
'No refill allowed' scripts, DUR hard stops, thereby increasing the efficiency of the
process

A more transparent process before the pick-up step that would let the customers
know the status of their order, any other payment related issues, incomplete
prescriptions in real time via a email or an SMS

The above step could reduce the number of customers that turn up to pick-up their
orders and are unsatisfied by the service provided by the CVS