Cvs Case

Business Processes

Student Name:

Due Date: upload to Moodle by Midnight Friday, September 23

Assigned Value: 30 points

Sustainability comment: As you formulate answers, keep in mind that this MBA in Design Strategy program seeks to create leaders who embrace innovation and sustainability to manage today's complex business environment.

Pharmacy Service Improvement at CVS

We have all had experiences of waiting in line at retail stores, but there is often extra anxiety associated with dropping off and picking up a drug prescription ("script"). Nobody wants to wait for long periods of time only to find out that the wait does not yield the desired result--a properly fulfilled transaction.

Below is the new fulfillment process that was rolled out in the later part of 2002 and it included three (3) major changes: 1) The first three steps are completed while the customer is present at the CVS drop-off counter, 2) DUR is combined with the QA step, and 3) the box that held scripts was replaced by an online virtual queue that was viewable at all workstations.

First 3 steps completed while customer is present ¬DUR is combined with QA

1. What are the key problems with the current business process that the Pharmacy Service Initiative (PSI) team is attempting to resolve?

RESPONSE:

Pharmacy Operations were not performing well. Thus, the PSI team confirmed the following problems:

* Customers stuck with CVS not because they thought they provided a great service, but because they didn't think that anyone else would take better care of them.

* Customers who did decide to leave were hampering the company's growth.

* Issue resolution process during pickup increased wait time for other customers in line.

2. Which problems do you expect the new fulfillment process to reduce?

RESPONSE:

I expect that the new fulfillment process improved service for the customer reducing their waiting time.

3. Why are the first three steps of the fulfillment process so critical? Which key problems are being addressed?

RESPONSE:

The first three steps are extremely important and they are generally performed in less than 5 minutes if no issues exist. The key change in process here is performing the insurance check prior to the DUR. 17% of all scripts encountered a problem during the insurance check. In most cases, those problems