Cvs Case Analysis

1. What changes do you recommend to CVS's existing pharmacy fulfillment process? What IT changes, if any, are required to implement your changes?

The fulfillment process in CVS pharmacy follows a five step process which starts with customer dropping their prescriptions mentioning pick up time, the technicians to fill the scripts near the time the customer would like to pick them up, data entry into pharmacy information system and cross check with respect to DUR and Insurance, Production and quality check and finally customers to return to the store to pick up their medications at the specified time.

Despite a systematic process, it creates several problems at each stage like unmanned drop off window, DUR hard stop, unauthorized refills, rejection of payment by Insurance which in turn causes long queues, angry customers during busy pick-up times, when the typical work day concludes.

In the current scenario, where is customer is the most important stakeholder, Customer service would be the first area to improve in order to retain current customers, since the industry is already known for its poor customer service. This will not only help retain light and heavy users, but also help greater customer switching from other pharmacies in favor of CVS.

We advise to implement a system that primarily focuses on the day to day operations, alters the drop-off, data entry, and production steps, which in turn will reduce the number of problems that occur specially during the pick-up stage. With the specified changes at each stage, we feel CVS will be able to improve their customer service and increase customer satisfaction while keeping the safety of its customers. The following changes in the day-to-day operations of the plans we would like to implement for CVS Pharmacy.

Day-to-Day Operations: The major changes would be to Constantly monitor drop-off station, Gather/check customer information, Update customer information in the system, Refill online and over telephone.

a) Drop-Off

-As customers drop off their prescriptions, they must be asked to fill a form. This form should have queries regarding any changes made to their jobs, insurance carriers, weight and any other critical data that would impede normal flow of the data entry phase in the fulfillment process.

- Set realistic expectations with the customer by having a conservative time set for pick- ups, determined by the type of prescription, whether refill or no refill and type of third party. For example, if customer has no remaining "refills", it may take up to 3 days to pick-up the prescription.

b) Data Entry: The major changes would be in Drug Utilization Review, Insurance Check & Revisions, Continuous Data Entry, Make necessary phone calls, Technician counts and verifies prescription and Record status of script

- Input data from the new customer form to the system so that it contains the most recent customer related information by implementing an updated and easy to use IT system.

- Modify the present IT system so that data will include the dates of drug usage and algorithms to deal with it - in an effort to minimize pharmacist intervention for DUR hard stops created by "conflicts" of drugs, prescribed a very long time ago.

-Integrate the "request via telephone application" with the IT system so that the staff and the technicians know exactly what is due and at what timings in the day.

c) Production:

Ensure that inventories are optimized so there are no shortages - either partial or complete. This can be executed using the same integrated IT system that must alert pharmacy management in advance as to when there is a shortfall in drugs of any category.

d) Quality Assurance: Since QA is currently happening perfectly , we suggest no changes in its operations

e) Pick-Up: The major changes would be to File finished prescriptions in alphabetical order, Verify name and birthdate, "Quick Pay" Option and At-Home Delivery

It's important to man the pick-up areas, at least during peak hours to enhance responsiveness and thereby perceived customer service.

The above changes will be implemented more effectively if appropriate IT changes are also made.

Enterprise IT has a very important role to play here. Since it is a powerful tool to ensure the execution goes as per the design, it can really help in monitoring and standardization. It will help the auditors and other stakeholder to have a transparent view to the systems and find any issues.

Before implementing any IT system, It is important to pilot test it via small experiments in multiple sites and multiple time periods - and analyze data to further optimize the new processes. Once its observed that the pilot is successful and have had significant impact, the company must roll it out across all its stores.

To make the new system a success it's also critical to get strong buy-in from all stakeholders involved, especially the pharmacists and technicians. A large part of allaying their concerns will be to establish