Pharmacy Service

Improvement
At CVS (A)
Submitted by : Group 1
Abhishek Menon| Ayush Srivastava| Krishna Chaitanya Golla| Pavirala Gopi|
Rajkumar Chouhan| Saurabh Yadav

Introduction

What is CVS?

Founded in 1963 (Lowell, Massachusetts)

One of Americas largest retail drugstores
4,000 stores
$24.2 Billion in revenue

Pharmacy Service Initiative (PSI)

Over two-thirds of revenue generated by pharmacies

Pharmacies currently have 29.5M customers each year
High customer turnover in spite of increasing revenue
Loss of potential profit/revenue through customer retention
(loss of 7.2M customers and a gain of 8.5M customers in 2000)
Customers that switch take with them $2.5 Billion in revenue
Customers are not receiving a pleasant experience

Current Pharmacy Process

Drop-Off (Tech)

Customer drops off prescription to tech

Tech puts script into slot corresponding to the hour
before desired pick up time.
Busiest drop-off times: before work, lunchtime, after
work

Data Entry (Tech)

Each hour, tech takes that hours scripts from the box
Required data entered into pharmacy information
system
DUR checks current script against all previous scripts,
patients age, gender, and other demographics for
potential problems

Hard stops MUST be reviewed by pharmacist before fulfillment

(PH)

Insurance Check

90% of customers use insurance

Errors: Drug not on formulary or refill too soon
Process continues even if rule is violated

Production (Tech)

Quality Assurance (Pharmacist)

Drugs to fill script are counted and verified

Pharmacist reviews script for quantity and other details
Five minute process from data entry to QA

Pickup (Tech)

Prescriptions sealed and stored in alphabetical order

Tech at pick up window finds script, verifies identity, and
takes payment

Issues with the current process

Drop-Off (Tech)
Nobody available/extended wait before initial data entry
Tech fails to retrieve proper information from customer
Failure to properly prioritize scripts

Data Entry (Tech)

DUR and Insurance Check
Customer not notified of third-party issues

No refills allowed
Drug not on formulary or refill too soon

No standard form for informing customers

One hour time frame (before the pick up time)

Production (Tech)

Quality Assurance (Pharmacist)

Partial or complete stock shortages

No specific issues

Pickup (Tech)

Long waiting time (especially 5 to 7 pm)

Script/groups of scripts cannot be found
Tech at pick-up window not qualified to answer
questions

What changes do you recommend to CVS'sexisting

pharmacy fulfillment process? What IT changes, If any,
are required to implementyour changes?
Changes:
1.
Employ one expert at stores to answer customer queries
2.
Separate line for immediate pickup and script drops
3.
Implement CRM with online portal
Data Entered online by Customer himself
OR
Customers visiting the stores physically
Virtual queue to handle the scripts as per priority
After data entry, the checks about drugs and insurance are
performed
Current status is updated on site where a customer can enquire the
status
Update customer if there will be delays
Post production, send to QA and pickup point

What are the problems you may face in implementing your

solution?
1.

Increase in IT expense

2.

Difficult to measure IT payoff

3.

Requires in house training on usage of the system and

adoption by the organization

4.

Spread awareness on the new online portal and its usage

among customers

5.

Generate robust database with unique customer ids

What capabilities will CVS acquire through the new process?

Status of a prescription available online

Delays informed to customer before hand
Software keeps track of inventories and is connected
with other stores
Pharmacists are notified to order additional inventory
when thresholds are reached
Customers are notified of new availability date or
alternate pick-up location for prescriptions not in
inventory
Trends can be identified and inventory turnover could be
forecasted
Customers with frequent issues can be flagged