CVS CASE STUDY

Pharmacy Service Improvement at CVS

[Date of Submission]Pharmacy Service Improvement at CVS

Introduction

Customer Value Store (CVS) is one of the largest retail drug stores in US having more than 4000 outlets in the country. The annual revenue of the company is approximately $24.2 billion with more than two third of the stated revenue generated by the pharmacies. Since the last few months, the company is faced with some serious issues related to the customer services, which really affected its overall sales. According to the company statistics, more than 7 million customers left CVS in a single year of 2000, resulting in the loss of approximately $2.5 billion. The company management assessed that 44 percent of these customer loss was mainly due to the service related issues. Further investigation has revealed that the major reason for these issues lies with the process to fill prescriptions followed at CVS stores. The five-step process is shown below;

Drop-off: In this step, a customer would deposit his/her script in the store and stipulate a pick up time.

Data Entry: All the information about the prescription i.e. doctor, patient, doctor, and third party provider is entered into the central database.

Production: The drugs to be delivered are counted and the sent to certified technicians for verification.

Quality Assurance: Each script is reviewed by the pharmacist to ensure that right drug is delivered to right customer in right quantities.

Pickup: After Quality Assurance, each completed script is then packed in a sealed bags, which are then stored in the pickup area. These bags are later delivered to the customer through the pickup window after the customer's identity is verified.

The model currently followed at CVS stores is resulting in serious issues concerning the customer satisfaction including insurance issues, incomplete script fill, delay in delivery, longer queues at stores. In order to ...